On Wednesday, India’s Tata Motors agreed to acquire the commercial vehicle business of Italy-based Iveco Group through an all-cash offer valuing the company at approximately €3.8 billion ($4.4 billion), the company announced.
Does The Acquisition Exclude Iveco’s Defence Business?
The acquisition excludes Iveco’s defence business. It will be carried out via Tata Motors’ wholly owned subsidiary, TML CV Holdings PTE LTD, or a newly incorporated Dutch entity. For all issued common shares of Iveco Group, a voluntary tender offer will be launched at €14.1 per share in cash.
According to the press release shared by the automaker, Iveco’s defence unit will not be part of the Tata Motors transaction. Instead, it will be sold separately to Italy’s state-backed defence firm Leonardo, in a deal also announced on Wednesday. Iveco Group is currently controlled by Italy’s Agnelli family through investment company Exor.
Tata Motors has agreed to non-financial commitments regarding operations and employment for at least two years after the deal closes.
Bringing Together Two Businesses
According to the Economic Times, Suzanne Heywood, Chair of Iveco Group, said that they are proud to announce this strategically significant combination, which brings together two businesses with a shared vision for sustainable mobility. Moreover, the reinforced prospects of the new combination are strongly positive in terms of the security of employment and industrial footprint of Iveco Group as a whole,” said.
The deal values Iveco’s remaining commercial vehicle business and offers shareholders a significant premium:
The €14.1 offer price, along with an estimated special dividend of €5.5–€6.0 per share related to the defence unit sale, amounts to a 22%–25% premium over Iveco’s three-month average share price of €16.02 (as of July 17, 2025). After deducting the expected dividend, the offer still represents a 34%–41% premium on a comparable basis.
