Mumbai, India / Turin, Italy – Tata Motors on Thursday 1 August announced the acquisition of Italian commercial vehicle manufacturer Iveco Group for EUR 3.8 billion ($ 4.4 billion) In the agreement, which is considered the most ambitious since its takeover of Jaguar Land Rover in 2008.
The transaction was structured as voluntary public offer of € 14.1 per share – which represents a 41 % bonus compared to the average Iveco stock – and allows Tata to consolidate its position on the European truck and buses markets and become one of the most widespread manufacturers of commercial vehicles in the world.
+ Australian early warning aircraft moved to Poland to support Ukraine
However, the agreement does not include Iveco’s defensive division, which will be sold to the Italian aviation giant independently Leonardo for EUR 1.7 billion In accordance with the requirements of the Italian government to maintain domestic control over technologies sensitive to national security.
Strategic expansion outside India
Tata Motors, a leader on the commercial vehicle market in India, currently holds 39.1 % of the total share and more than 53 % in segment of heavy vehicles. Nevertheless, approximately 90 % of income in this segment is still focused on the domestic market.
“Iveco’s acquisition is a major step for Tata Motors because it allows you to reduce addiction to the Indian market and move towards a real global presence,” the company spokesman said.
Synergies of markets and income
Iveco, which in 2024 showed sales of amount EUR 15.3 billiongenerates approximately 75 % of these income in Europe and is also present in Latin and North America. After merging the new entity will generate approximately 22 billion euros of annual sales and sell more than 540,000 vehicles per yeargeographically divided into 50 % in Europe, 35 % in India and 15 % in America.
The new subject will build Tata Motors to direct competition with giants as Volvo, Daimler a Scaniaby opening a new chapter in the global struggle for sustainable and technologically advanced commercial vehicles.
Strategic support and strong financing
Family Lambswhich, through a holding company Exor It holds more than 43 % of voting rights in Iveco, already expressed the support of this transaction. Financing will ensure a consortium led by companies Morgan Stanley and the Japanese bank MUFG Bankwhich TATA provides sufficient funds to complete the purchase without dilution of shares.
After completing the transaction, which is expected in the coming months, Tata Motors is once again profiled as one of the world’s power in terms of commercial vehicles, ready to face challenges and opportunities for increasingly competitive and globalized markets.
Source and pictures: Iveco. This content was created with the help of artificial intelligence and checked by the editorial team.
