Iveco Group and Tata Motors Limited announced that they have reached an agreement to create a commercial vehicles group with the reach, product portfolio and industrial capability to be a global champion in this dynamic sector. The companies emphasize that the combination brings together complementary capabilities, global reach, and a shared strategic vision to drive long-term growth and unlock significant value. Together, Iveco and the commercial vehicle business of Tata Motors will have combined revenues of €22bn.
Iveco Group Board recommends Tata Motors’ all-cash voluntary tender offer for Iveco Group common shares. Completion of the offer is conditional on the separation of Iveco Group’s defence business (IDV and ASTRA brands) which will be purchased by the Italian based company Leonardo S.p.A. The Offer by Tata Motors represents a total consideration of approximately EUR 3.8 billion for Iveco Group, excluding Iveco's defence business and the net proceeds from the defence business separation. The Offer is expected to complete in the first half of 2026. With the takeover the commercial vehicle business of Tata Motors will have revenues of €22bn (INR 2,20,000Cr+) split across Europe (c.50%), India (c.35%) and the Americas (c.15%) with attractive positions in emerging markets in Asia and Africa. It will also enable the capabilities of Iveco Group’s successful powertrain business, FPT, to be further enhanced. Iveco Group’s headquarters will remain in Turin, Italy. Tata Motors has according to the press release stated it does not envisage
any reduction of the workforce of Iveco Group as a direct consequence of the combination. Iveco Group, together with its subsidiaries, will continue to have its own operating and reporting structure, with the Iveco Board managing the Iveco Group and its businesses. Iveco Group is the home of Light, Medium and Heavy Commercial Vehicles (IVECO), Powertrain (FPT Industrial), Buses (HEULIEZ, IVECO BUS), Financial Services (IVECO CAPITAL), Specialty Vehicles (IDV, ASTRA). Tata Motors Limited, is a USD 44 billion organization, and manufactures cars, utility vehicles, pick-ups, trucks, and buses, offering an extensive range of integrated, smart, and e-mobility solutions. Tata Motors says it is India's market leader in commercial vehicles and ranks among the top three in the passenger vehicles market in India. Tata Motors is demerging its commercial vehicle business, as announced 1 August 2024, and expects to complete that process later this year.