Tata Motors is set to make its largest overseas acquisition since Jaguar Land Rover, proposing to take full control of European commercial vehicle manufacturer Iveco Group in a deal valued at approximately Rs 38,000 crore.
A Landmark Global Deal
Tata Motors (TML) has put forward a voluntary public cash tender offer to acquire Iveco Group N.V., excluding its defence business. This significant move is estimated to cost around Euro 3.8 billion, equivalent to about Rs 38,000 crore or US $4.35 billion.
This proposed acquisition marks Tata Motors’ biggest international deal since it acquired Jaguar Land Rover (JLR) from Ford in 2008 for $2.3 billion.
The offer will be made by TML CV Holdings Pte Ltd or a new Dutch-incorporated company, wholly owned by Tata Motors. Iveco, based in Turin, Italy, is part of Iveco Group N.V., headquartered in Amsterdam.
Forging a Global Commercial Vehicle Champion
Both Iveco and Tata Motors have announced their agreement to create a formidable commercial vehicles group. This combined entity aims to achieve global leadership with expanded reach, a diverse product portfolio, and enhanced industrial capabilities.
Together, Iveco and Tata Motors’ commercial vehicle business would boast combined revenues of Euro 22 billion (Rs 2,20,000 crore). This revenue would be split across Europe (50%), India (35%), and the Americas (15%), with strong positions in emerging markets across Asia and Africa.
Strategic Vision from Leadership
Natarajan Chandrasekaran, Chairman of Tata Motors, highlighted this acquisition as a logical progression following the demerger of Tata Motors’ Commercial Vehicle business. He stated it would enable the combined group to compete globally with two strategic home markets: India and Europe.
“The combined group’s complementary businesses and greater reach will enhance our ability to invest boldly,” Chandrasekaran added, expressing anticipation for the deal’s conclusion.
Suzanne Heywood, Chair of Iveco Group, expressed pride in the combination, emphasizing its shared vision for sustainable mobility. She also noted the positive impact on employment security and Iveco Group’s industrial footprint.
Unlocking Future Growth and Innovation
The completion of the offer is contingent on the separation of Iveco’s defence business. The public offer is specifically for all common shares of Iveco Group post-separation, priced at Euro 14.1 per share in cash.
Iveco, originally demerged from CNH Industrial, focuses on designing, manufacturing, and marketing heavy, medium, and light-duty trucks. The company employs 36,000 people globally across 19 industrial sites and 31 R&D centers.
This merger is expected to enable the combined group to invest more effectively in innovative, sustainable mobility solutions. By leveraging both supplier networks, the new entity aims to better serve customers worldwide, unlock superior growth, and create significant value for all stakeholders.
- Tata Motors’ proposed acquisition of Iveco is valued at approximately Rs 38,000 crore (Euro 3.8 billion).
- It marks Tata Motors’ largest overseas acquisition since Jaguar Land Rover in 2008.
- The deal aims to create a global commercial vehicle powerhouse with combined revenues of Euro 22 billion.
- The acquisition excludes Iveco’s defence business and has strong shareholder support from Exor.
This strategic move is poised to redefine Tata Motors’ global footprint and strengthen its position in the evolving commercial vehicle landscape.
