Tata Motors has taken control of Italian commercial-vehicle maker Iveco after acquiring an 89.42 per cent stake for approximately €3.43 billion, or ₹36,387 crore, in a transaction that expands its presence in global freight, bus and vehicle-financing markets. The deal now shifts attention to integrating the two businesses, generating cash-flow benefits and repaying the debt used to fund the acquisition.
TML CV Holdings B.V., an indirect wholly owned subsidiary of Tata Motors, acquired 238.16 million Iveco common shares at €14.40 each after settling its cash tender offer. Iveco has consequently become an indirect subsidiary of Tata Motors, according to the company’s exchange filing.
N. Chandrasekaran, Chairman of Tata Sons, has become Iveco’s non-executive chairperson and senior non-executive director. Iveco Chief Executive Olof Persson will continue in his role. Tata Motors executives P. B. Balaji and Girish Wagh have joined the Iveco board along with independent directors Guenter Butschek and Charles Nichols.
The board changes also include alterations to Iveco’s committees and voting structure. All outstanding special voting shares have been repurchased for no consideration. The transaction excludes Iveco’s defence operations, which are being sold separately to Leonardo.
Girish Wagh, Tata Motors’ Managing Director and CEO, told investors during the company’s October 23 earnings call that consolidation would begin in the October–December quarter. “The immediate priority is to ensure a seamless transition,” he said, according to the report.
Iveco reported calendar-year 2025 revenue of €13.43 billion, down about 6.9 per cent from €14.42 billion in 2024. The company employs 33,000 people across 16 industrial sites and 22 research and development centres. Its operations include trucks, buses, FPT powertrain technologies and vehicle-financing services.
The acquisition gives Tata Motors a larger international commercial-vehicle platform at a time when freight and public-transport systems are under pressure to improve efficiency and adopt lower-emission technologies. Iveco brings established European and Latin American operations, as well as capabilities in engines, alternative fuels and electrification. Tata Motors has said the businesses could share technology investments, distribution networks and procurement benefits.
The companies estimated in September that the combined business would generate annual revenue of approximately €21 billion and sell more than 590,000 vehicles. Europe would account for about 46 per cent of the combined revenue base, India 32 per cent and South America 8 per cent.
The financial commitments attached to the acquisition will be closely watched. Tata Motors’ July 2025 investor presentation targeted annual free-cash-flow synergies of up to 0.5 per cent of combined revenue from FY28, earnings-per-share breakeven within two years and repayment of acquisition debt within four years. The latest filing did not disclose the final acquisition debt outstanding or an updated financing mix.
The integration also comes as Tata Motors faces cost pressures in its domestic commercial-vehicle operations. Management has guided for industry growth in the high single digits to low double digits during the October–December quarter, while warning of a further 150–200-basis-point commodity-cost headwind.
Tata Motors has not yet secured full ownership of Iveco. The offer will reopen for remaining shareholders from November 2 to 6, with settlement scheduled for November 13. Subsequent options include a voluntary purchase procedure, a Dutch legal squeeze-out or a post-offer demerger and liquidation, depending on applicable conditions. Iveco’s September-quarter results are scheduled for November 3, the first planned financial update after Tata Motors assumed control.
