Tata Motors to acquire Iveco in €3.8Bn deal

India’s Tata Motors announced on July 30 it will acquire Italian commercial vehicle maker IVECO for approximately €3.8 billion ($4 billion), expanding its global footprint in the truck and bus market.

Under the agreement, Tata Motors will buy all outstanding common shares of IVECO at €14.1 per share in cash, with the transaction expected to close in the first half of 2026. The acquisition excludes IVECO’s defense division, which will be sold separately to Italy’s Leonardo S.p.A. for €1.7 billion by March 31, 2026.

IVECO, headquartered in Turin, employs about 36,000 people worldwide. The company is known for commercial vehicles such as the EuroCargo, Daily, and S-Way models and competes with larger firms like Volvo Trucks and Daimler.

Tata Motors, India’s largest automaker and part of the Tata Group, aims to combine its commercial vehicle business with IVECO to create a globally competitive group covering India, Europe, and emerging markets in Asia and Africa. The company said no factory closures or layoffs are planned, and IVECO’s headquarters will remain in Turin.

Natarajan Chandrasekaran, Chairman of Tata Motors, said the acquisition is a “logical next step” following Tata’s recent restructuring of its commercial vehicle division. “By combining two home markets — India and Europe — the new group will be positioned to compete globally,” he said.

The deal has been endorsed by IVECO’s board and its largest shareholder, Italy’s Exor Group, which holds roughly 27% of common shares and 43% of voting rights. Exor has committed to support the transaction and will vote in favor at the shareholders’ meeting.

Once complete, Tata Motors plans to delist IVECO from the Milan Stock Exchange, making it a wholly owned subsidiary. The combined company is projected to sell over 540,000 vehicles annually and generate revenues near €22 billion, with about half coming from Europe.

The acquisition follows Tata Motors’ 2008 purchase of Jaguar Land Rover and its 2004 takeover of Daewoo’s commercial vehicle business, signaling its continued ambitions in the global automotive sector.

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