In a stunning move that re-sets the global commercial vehicle landscape, Tata Motors has announced its intent to acquire European heavyweight Iveco Group in an all-cash voluntary tender offer valued at approximately €3.8 billion ($4.3 billion).
The agreement will see Tata Motors acquire 100% of Iveco’s common shares — following the divestment of its defence business — via its wholly owned subsidiary, TML CV Holdings PTE LTD or a new Dutch-incorporated entity.
The transaction is backed by committed financing and has the unanimous support of Iveco’s Board of Directors, which has recommended the offer to shareholders, the firms said in a shared announcement.
The deal values Iveco at €14.1 per share (excluding dividends from the defence business sale) and represents a 34%-41% premium over the pre-announcement share price. Major shareholder Exor N.V., which holds over 27% of Iveco’s shares and 43% of its voting rights, has pledged to support the offer.
The merger, expected to close in the first half of 2026, is contingent on regulatory approvals and the completion of Iveco’s defence business divestiture, scheduled by 31 March 2026.
Upon completion, the new entity will boast combined annual revenues of around €22 billion and global unit sales of approximately 540,000 vehicles.
Leaders from both companies expressed strong alignment in strategic goals. Tata Motors Chairman Natarajan Chandrasekaran said the deal enables the new group to compete on a truly global scale, with dual strategic bases in India and Europe. Iveco Chair Suzanne Heywood added that the partnership enhances prospects for long-term industrial and employment security.
“This is a logical next step following the demerger of the Tata Motors Commercial Vehicle business and will allow the combined group to compete on a truly global basis with two strategic home markets in India and Europe,” said Natarajan Chandrasekaran, Chairman of Tata Motors.
“The combined group’s complementary businesses and greater reach will enhance our ability to invest boldly. I look forward to securing the necessary approvals and concluding the transaction in the coming months.”
The acquisition will preserve both companies’ current footprints and brands. Iveco’s Turin headquarters will be maintained, and no job cuts or factory closures are planned as a result of the transaction.
“We are proud to announce this strategically significant combination, which brings together two businesses with a shared vision for sustainable mobility,” said Suzanne Heywood, Chair of Iveco Group. “Moreover, the reinforced prospects of the new combination are strongly positive in terms of the security of employment and industrial footprint of Iveco Group as a whole.”
Olof Persson, CEO of Iveco Group added: “By joining forces with Tata Motors, we are unlocking new potential to further enhance our industrial capabilities, accelerate innovation in zero-emission transport, and expand our reach in key global markets. This combination will allow us to better serve our customers with a broader, more advanced product portfolio and deliver long-term value to all stakeholders.”
With a highly complementary product range and minimal geographical overlap, the combined company is set to become a powerful player in the global commercial vehicle sector — poised to drive innovation in zero-emission transport and sustainable mobility.
“This combination is a strategic leap forward in our ambition to build a future-ready commercial vehicle ecosystem. By integrating the strengths of both organisations we are unlocking new avenues for operational excellence, product innovation and customer-centric solutions.
“This partnership not only enhances our ability to serve diverse mobility needs across markets, but also reinforces our commitment to delivering sustainable transport solutions that are aligned with global megatrends,” said Olof Persson, CEO of Iveco Group. “Together, we are shaping a resilient and agile enterprise, equipped to lead in times of transformative change.”
