Tata Motors to Acquire Iveco in Record $4.5 Billion Deal
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Tata Motors is poised to acquire Italian truck manufacturer Iveco from its majority stakeholder, the Agnelli family, in a landmark deal valued at $4.5 billion. This acquisition is slated to become the Tata Group’s second-largest overall, following its $12.1 billion takeover of Corus, and the biggest ever for its automotive arm. It also surpasses Tata Motors’ 2008 purchase of Jaguar Land Rover, which was sealed at 2.3 billion dollars.
The boards of Tata Motors and Turin-based Iveco are meeting to approve the transaction. An official statement regarding the acquisition is expected to be made early.
Iveco confirmed it was engaged in ‘ongoing, advanced’ discussions with multiple parties concerning two separate transactions, one involving its defense segment and the other relating to the remainder of the business.
The company had already announced that it planned to proceed with the next stages of either selling off or spinning off its defense business by the end of 2025, and indicated that it had already had offers about it. Besides trucks, Iveco also deals with buses and engines and its present market capitalization stands at around $4.9 billion. Exor is the owner of 27.1 percent of Iveco, as well as 43.1 percent of the voting rights of the truck manufacturer.
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Despite being one of Europe’s leading commercial vehicle brands, Iveco remains the smallest among the top players, a group led by Volvo, Daimler, and Traton. Due to its size, it has long been viewed by investors and analysts as a potential target for mergers or acquisitions. However, its involvement in the sensitive defence sector has historically made such deals more complex and limited the number of eligible buyers.
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Any merger or acquisition involving Iveco is likely to come under scrutiny from Italian authorities through Rome’s 'golden power' legislation, which grants the government the authority to impose conditions on transactions involving companies considered to be of strategic national interest. The company employs around 36,000 individuals globally, including 14,000 based in Italy.