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MUMBAI/TURIN - Tata Motors Limited (NSE:TATAMOTORS) announced Wednesday it has reached an agreement to acquire Iveco Group N.V. (EXM:IVG), a prominent player in the machinery industry, in an all-cash deal valued at approximately €3.8 billion, excluding Iveco’s defence business.
The Indian automaker plans to make a voluntary tender offer of €14.1 per share through its subsidiary TML CV Holdings PTE LTD. The offer represents a premium of 34%-41% based on Iveco’s three-month volume-weighted average price prior to speculation about a possible acquisition. According to InvestingPro data, Iveco has demonstrated strong returns over the past three months, with its stock showing significant momentum. Get access to 10+ more exclusive ProTips and comprehensive valuation metrics with InvestingPro.
The Iveco Group Board has unanimously recommended shareholders accept the offer. Exor N.V., Iveco’s largest shareholder with approximately 27% of common shares, has irrevocably committed to tender its stake.
The acquisition is conditional on the separation of Iveco’s defence business, which is expected to be completed by March 31, 2026, as well as obtaining necessary regulatory approvals. The transaction is anticipated to close in the second quarter of 2026.
The combined entity would create a commercial vehicles group with annual sales of over 540,000 units and combined revenues of approximately €22 billion, split across Europe (50%), India (35%), and the Americas (15%). InvestingPro analysis shows Iveco maintains a solid financial health score of 2.27 (FAIR), with particularly strong price momentum metrics. Discover detailed merger analysis and future growth projections with InvestingPro’s comprehensive research reports, available for 1,400+ top stocks.
"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 companies emphasized the complementary nature of their businesses, with minimal overlap in industrial and geographic footprints. Tata Motors has committed to maintaining Iveco’s headquarters in Turin, Italy, and has agreed to non-financial covenants for two years following the settlement of the offer, including commitments regarding strategy, employees, and governance.
The information in this article is based on a press release statement from both companies.
In other recent news, Iveco Group NV reported its Q1 2025 earnings, revealing consolidated net revenues of €3 billion, which represents a 10% decline compared to the previous year. Despite meeting earnings per share expectations at €0.31, the company fell short of the anticipated €3.7 billion in revenue. Additionally, Iveco Group announced a definitive agreement to sell its Defence Business, including the IDV and ASTRA brands, to Leonardo S.p.A. for an enterprise value of €1.7 billion. This transaction is part of a strategic move to bolster Italy’s position in the European land defense sector. Meanwhile, the Italian government is closely monitoring a potential sale of Iveco Group to Tata Motors, as stated by Industry Minister Adolfo Urso. Italian Defence Minister Guido Crosetto expressed his preference for keeping Iveco’s defense unit under Italian ownership, highlighting its significance to the national industrial sector. These developments reflect strategic shifts and governmental interests in the company’s future.
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