Tata Motors has commenced a recommended all-cash voluntary tender offer for all issued common shares of Iveco Group N.V., an international commercial vehicle and mobility company, through its wholly owned subsidiary TML CV Holdings B.V.
The offer is priced at €14.10 per common share, cum dividend, and values Iveco Group at approximately €3.82 billion. The acceptance period will run from September 7 to October 26, 2026.
Exor commits 27.06% stake
Exor N.V., Iveco Group’s largest shareholder, has irrevocably committed to support the offer and tender its entire holding, representing 27.06% of Iveco’s common shares and 43.19% of voting rights.
The transaction is intended to result in Tata Motors acquiring 100% of Iveco Group’s common shares and delisting the company from Euronext Milan.
Combined group to serve global markets
Tata Motors and Iveco said their businesses have highly complementary product portfolios and capabilities, with limited overlap in their industrial and geographic footprints. The combination is expected to create a diversified commercial vehicle business with a global presence and annual sales of more than 590,000 units.
The combined businesses are expected to generate revenues of about ₹2,28,000 crore across Europe, India, South America and other markets, with positions in emerging markets across Asia and Africa.
Scale to support investments
The companies said the combination would strengthen their ability to invest in innovative and sustainable mobility solutions by leveraging their respective supplier networks and global customer bases.
The larger scale is also expected to improve operating leverage by spreading capital investments across higher volumes, generating efficiencies and reducing cash flow volatility in the commercial vehicle industry.
FPT powertrain business to gain
The combination will also provide opportunities to further strengthen Iveco Group’s powertrain business, FPT, while creating a broader platform for future commercial vehicle technologies.
“The commencement of the tender offer marks an important milestone in bringing together two highly complementary organisations with a shared commitment to excellence, innovation and customer success,” Tata Motors, Managing Director and CEO, Girish Wagh, said.
Focus on integration and continuity
“By combining our respective strengths, capabilities and market presence, we have the opportunity to build a stronger, more globally competitive commercial vehicle business that is better positioned to serve customers, invest in future technologies and create sustainable value for all stakeholders,” Wagh said.
Iveco Group, CEO, Olof Persson, said the combination would create a major new force in global commercial vehicles by increasing scale and reach, accelerating innovation and expanding the product offering for customers worldwide.
Iveco identity and operations to remain
The Offeror has committed to maintaining Iveco Group’s corporate identity, core values, culture, brands, trademarks and logos. Iveco Group’s headquarters will remain in Turin, Italy.
The Offeror has also committed not to undertake material restructurings or close any Iveco-owned or operated plants or factories as a direct consequence of the combination during the period covered by the non-financial covenants.
Deal targets wholly owned structure
The companies said a wholly owned and unlisted structure would support Iveco Group’s long-term business development and value creation.
The Iveco Board will continue to oversee decisions related to long-term growth and competitiveness, while the proposed combination is positioned as a platform for sustainable growth in the rapidly changing global commercial vehicle industry.