Italy’s market regulator Consob has approved the offer document for Tata Motors’ voluntary tender offer to acquire all common shares of commercial vehicle manufacturer Iveco Group, allowing the acceptance process to begin from September 7.
The approval has brought the deal closure to its conclusion. Tata Motors is preparing for a major overhaul of its commercial vehicle business with the acquisition of Iveco.
The deal is expected to become a key pillar of its global expansion plans. The transaction, valued at around €3.8 billion ($4.4 billion), includes Iveco’s commercial vehicle operations while excluding its defence business.
To create one of world’s largest CV manufacturers
The acquisition could create one of the world’s largest commercial vehicle manufacturers, with the combined entity expected to sell more than 5.4 lakh vehicles annually and generate revenue of around €22 billion.
The merger would also provide Tata Motors with a wider geographical footprint across Europe, India and the Americas.
The acquisition will give Tata Motors access to Iveco’s established sales and service network, especially in Europe and Latin America.
It will also add manufacturing capabilities in markets such as Brazil and Argentina, while opening opportunities to introduce Tata-branded commercial vehicles through Iveco’s distribution channels.
The deal could also allow Tata Motors to evaluate selected Iveco products for the Indian market. Girish Wagh, managing director and chief executive officer of Tata Motors’ commercial vehicle division, has indicated that models such as prime movers and the Iveco Daily range could potentially be introduced in India.
The acquisition marks a shift from Tata Motors’ traditionally India-focused commercial vehicle strategy towards becoming a globally diversified player. The company expects the deal to improve sourcing efficiencies, expand technology access and strengthen manufacturing utilisation.
Beyond the acquisition
Along with the Iveco transaction, Tata Motors is pursuing initiatives in alternative fuels, digital platforms and connected mobility. The company is working on pilot projects involving diesel blended with 2% isobutanol in collaboration with HPCL and government agencies.
The automaker is also investing in artificial intelligence-based logistics solutions and connected vehicle technologies aimed at improving fleet efficiency and customer engagement.
Tata Motors is targeting a 40% share of India’s commercial vehicle market by FY28, along with double-digit EBITDA margins and stronger cash generation.
The deal represents more than an expansion in vehicle volumes. It is a strategic move aimed at transforming Tata Motors from India’s leading commercial vehicle manufacturer into a global industry player.
