Tata Motors Acquire Iveco for 38,240 Cr Rupees, Shares Dip 0.5%

Shares of Tata Motors slipped 0.5% in early trade on Thursday to ₹665.80 apiece, a day after the company confirmed its largest-ever overseas buyout: the acquisition of Italian commercial vehicle manufacturer Iveco Group for €3.8 billion (approximately ₹38,240 crore).

With this agreement, Tata Motors hopes to increase its presence in the commercial vehicle market on a global scale. Since Tata Motors is only concentrating on its commercial activities, this acquisition does not include Iveco's defense business.

Tata Motors plans to purchase shares directly from Iveco's current shareholders as part of an all-cash voluntary tender offer for the acquisition of Iveco. The deal requires at least 80% of shareholders to accept the offer for it to proceed and is also subject to necessary regulatory and statutory approvals across relevant jurisdictions.

On Wednesday, Tata Motors share fall was observed, with the stock closing at ₹668, down 3.52% on the NSE. The Tata Motors stock drop followed news leaks around the potential transaction, which the company later confirmed.

Largest Buyout Since JLR

The Iveco takeover ₹38,240 crore will surpass Tata Motors' 2008 acquisition of Jaguar Land Rover ($2.3 billion), making it the automaker's most significant acquisition in the automotive space. At a proposed €14.1 per share, the tender offer targets over 271 million common shares of Iveco Group N.V., headquartered in Turin, Italy.

“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 Tata Sons Chairman Natarajan Chandrasekaran.

Strategic Expansion into Europe

Tata Motors has gained access to Iveco’s product line up, engineering capabilities, and distribution network across Europe through this strategic deal. This is expected to enhance Tata Motors presence in the global market.

Suzanne Heywood, Chair of Iveco Group, called it a “strategically significant combination, which brings together two businesses with a shared vision for sustainable mobility.” She also highlighted the positive employment and industrial prospects for Iveco employees post-transaction.

The integration of the two firms will result in a Iveco commercial vehicle merger, with combined revenues of approximately €22 billion (₹2,20,000 crore) split across Europe (50%), India (35%), and the Americas (15%).

Future-Ready Growth Strategy

Girish Wagh, Executive Director at Tata Motors, stated that the move represents “a strategic leap forward in the group’s ambition to build a future-ready commercial vehicle ecosystem.”

Both the companies will leverage their supplier networks to provide sustainable mobility solutions and create a long term value. The Iveco €3.8 billion bid is expected to close by April 2026, which is subject to all regulatory and shareholder approvals.

Conclusion

According to Tata Motors, its Q1 FY26 results will be announced on 8th August 2025. This has created a buzz in the market as investors and stock market analysts are keenly watching how this acquisition will align with Tata Motors financial strategy and roadmap for global growth.

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