Tata Motors to acquire Italian truck maker Iveco for $4.5 billion

New Delhi: Tata Motors is set to acquire Italian truck manufacturer Iveco Group NV for $4.5 billion (€3.9 billion) from its principal shareholder, the Agnelli family, marking the Tata Group’s second-largest acquisition ever and its biggest in the automotive sector to date. 

As per news reports, the deal will surpass Tata’s 2008 purchase of Jaguar Land Rover for $2.3 billion and is expected to be finalised as early as Wednesday, July 30, 2025, pending board approvals from both companies.

The acquisition will see Tata Motors purchase a 27.1% stake in Iveco from Exor, the Agnelli family’s investment firm, which holds 43.1% of Iveco’s voting rights. Tata plans to launch a tender offer to acquire the remaining shares, excluding Iveco’s defense business, which is being spun off or sold separately.

The transaction will be routed through a Dutch entity wholly owned by Tata Motors, with Morgan Stanley advising Tata and Goldman Sachs and Clifford Chance representing Exor and Iveco.

Iveco, the smallest of Europe’s major truck makers behind Volvo, Daimler, and Traton, specializes in commercial vehicles, buses, and powertrains, generating 74% of its revenue from Europe. Its shares surged 7.4% intraday on Tuesday, July 29, 2025, boosting its market valuation to $6.15 billion.

The deal, which has been under discussion for the past six weeks under an exclusivity agreement set to lapse on August 1, is expected to enhance Tata Motors’ global commercial vehicle footprint, particularly in Europe and Latin America.

The Agnelli family, longstanding allies of the Tata Group through past ventures like a Fiat Motors joint venture in India, supports the sale, which is subject to Italy’s “golden power” legislation governing strategic assets.