Tata Motors Launches Iveco Takeover Offer At €14.1 Per Share

Tata Motors has officially begun its voluntary tender offer to acquire Iveco Group, marking a key step in its proposed takeover of the Italian commercial vehicle manufacturer.

The offer has been launched through Tata Motors’ subsidiary TML CV Holdings B.V. after receiving necessary regulatory clearances, Moneycontrol reported.

The offer is for all outstanding common shares of Iveco at €14.1 per share in cash. The acceptance window will remain open from September 7 to October 26, unless extended according to applicable regulations.

Iveco shareholders to decide on Tata Motors deal

Iveco’s board has unanimously backed the transaction and recommended that shareholders accept Tata Motors’ offer. Exor, the largest shareholder in Iveco, has also committed to support the deal by tendering its stake of around 27.06% of common shares, representing 43.19% of voting rights.

The acquisition has received competition approvals, foreign direct investment clearances, foreign subsidies regulation approval and other required authorisations.

Iveco will hold an extraordinary general meeting on October 16, where shareholders will vote on resolutions linked to the transaction. The offer requires Tata Motors to secure acceptance for at least 95% of Iveco shares, though the threshold could reduce to 80% if shareholders approve a related back-end resolution.

If Tata Motors achieves 95% ownership, it plans to acquire remaining shares through a Dutch squeeze-out process. If ownership remains between 80% and 95%, the company intends to pursue a post-offer demerger and liquidation route, subject to approvals.

Deal aims to create global commercial vehicle powerhouse

The proposed acquisition will combine Tata Motors’ commercial vehicle business with Iveco’s operations, creating a global commercial vehicle group with annual sales exceeding 5.9 lakh units and combined revenue of around €21 billion.

The merged entity will have a diversified presence, with Europe expected to contribute about 46% of business, followed by India at 32%, South America at 8% and other markets at 14%.

Tata Motors and Iveco have limited overlap in their operations, with Tata Motors holding a strong position in India and emerging markets, while Iveco has established networks in Europe and Latin America.

The acquisition is expected to strengthen Tata Motors’ global footprint by combining manufacturing capabilities, supplier networks and product portfolios.