Tata Motors has announced plans to buy Italian commercial vehicle manufacturer Iveco Group, excluding its defense division, in a deal valued at €3.8 billion (approximately ₹38,240 crore). The acquisition will be carried out through an all-cash voluntary tender offer, marking the company’s largest international deal in the automotive sector.
The deal, once completed, will surpass Tata’s previous landmark acquisition of Jaguar Land Rover in 2008, which was purchased for $2.3 billion. The board’s executive committee has approved the proposal to acquire all publicly traded common shares of Iveco Group NV, subject to regulatory and statutory approvals. The offer excludes Iveco’s defense operations and includes a proposed payment of €14.1 per share.
Both companies stated the agreement aims to build a global commercial vehicle business with a strong presence in key markets and a complementary product range. The transaction involves 271.2 million shares and requires a minimum of 80% of shares to be tendered for the offer to go through. Tata Motors expects the deal to close by April 2026, pending regulatory clearance.
Tata Motors Chairman Natarajan Chandrasekaran described the acquisition as a natural progression after the recent restructuring of its commercial vehicle division, saying the move will enable the group to compete on a global scale with solid foundations in both Europe and India. “This transaction strengthens our position in the global market and boosts our ability to make bold investments in future-ready technologies,” he said.
Suzanne Heywood, Chair of Iveco Group, called the deal a “strategically important move,” adding that it supports both job security and the company’s manufacturing base. Once combined, the businesses will generate around €22 billion in annual revenue, with operations across Europe (50%), India (35%), and the Americas (15%). The merger is expected to boost reach in Asia and Africa as well.
The collaboration will focus on innovation in sustainable transport, including the development of zero-emission vehicles. Both companies will maintain their existing manufacturing bases and workforce, which is expected to help ensure a smooth transition.
Girish Wagh, Executive Director at Tata Motors, said the merger reflects the company’s ambition to lead the commercial vehicle market with a sustainable approach. “This step enhances our ability to address evolving transportation needs and aligns with major global trends in mobility,” Mr Wagh said. Iveco CEO Olof Persson said the partnership opens new avenues for advancing clean energy transport technologies and expanding market access.
The offer will be made through TML CV Holdings PTE LTD or a Dutch entity owned entirely by Tata Motors. Iveco Group, headquartered in Turin, designs and builds trucks, buses, and powertrains, and also offers financial services to its network of dealers and customers. This acquisition stands as Tata Group’s second-largest foreign purchase, following the $12 billion acquisition of steelmaker Corus Group in 2007.
