Tata Motors has acquired an 89.42% stake in Italy-based Iveco for nearly 3.43 billion euros, creating a commercial vehicle group that the companies say will rank as the world’s fourth-largest by revenue. The combined enterprise is projected to generate annual revenue of Rs 2.28 lakh crore, or about 21 billion euros.
The transaction follows the initial settlement of Tata Motors’ cash tender offer for Iveco’s common shares. Tata Motors offered 14.4 euros per share under the voluntary offer, and Iveco has become an indirect subsidiary of the Indian automaker. The acquisition is Tata Motors’ biggest since it bought Jaguar Land Rover from Ford in 2008.
The deal brings together two businesses serving the commercial transport market, including the vehicles and industrial operations that support freight movement, public services and urban supply chains. Iveco Group employs 33,000 people and operates 16 industrial sites and 22 research and development centres, according to the report.
The transaction was discussed at a global press meeting at Iveco’s headquarters in Turin, where Tata Sons Chairman N Chandrasekaran outlined the expected scale of the combined business. “We see the volumes increasing over the next five years, and we see the revenues significantly increasing, and also the margin profile increasing,” Chandrasekaran said.
The enlarged company’s performance will be closely linked to demand for commercial vehicles across the markets in which the two businesses operate. Commercial vehicles are central to the movement of goods between industrial areas, warehouses, ports, wholesale markets and neighbourhood delivery networks. However, the companies have not provided a detailed integration plan or market-by-market volume projection in the announcement reported by Economic Times.
Tata Motors Managing Director and Chief Executive Officer Girish Wagh declined to provide a timeline for Iveco’s delisting from Italian stock exchanges, but said it would happen soon. The company’s ownership position may change further after the reopening of the tender offer, which gives remaining shareholders another opportunity to sell their shares.
The acceptance period will reopen for five trading days from November 2 to November 6, 2026. Shares tendered during this additional period are scheduled to be settled on November 13. Tata Sons Chairman N Chandrasekaran has been appointed Chairperson and Senior Non-Executive Director of Iveco, while Olof Persson will continue as Chief Executive Officer. Tata Motors executives PB Balaji and Girish Wagh have joined the Iveco board as non-independent, non-executive directors.
The immediate next step is the completion of the reopened tender process and settlement of the shares tendered during that period. A timeline for Iveco’s delisting and further integration measures has not been specified in the reported announcement.
