EVWire brief: Tata Motors has signed a definitive agreement to buy 100% of Iveco Group for €3.8 billion ($4.35B) in cash. The takeover will combine Tata’s strong position in India and emerging markets with Iveco’s European light-, medium- and heavy-duty line-up, creating a top-five global commercial-vehicle manufacturer by volume.
Details:
Brands included are Iveco trucks and buses, FPT Industrial powertrains, and Magirus firefighting vehicles.
The boards of both companies have approved the transaction; closing is expected in Q2 2026, pending EU, UK, Indian, and US antitrust clearances.
Tata will fund the deal with a mix of internal cash and long-term debt; no new equity issuance is planned.
Iveco shareholders will receive €14.10 per share, excluding dividends from Iveco’s defence business, which is being sold separately.
Tata and Iveco estimate annual cost and purchasing synergies of €550 million by year three, with no immediate plant closures.
The merger between Tata Motors and Iveco will create a group with sales exceeding 540,000 units per year, with combined revenues of approximately €22 billion, divided between Europe (~50%), India (~35%) and the Americas (~15%).
Iveco's S-eWay and Heavy-Duty BEV drivetrains should now drop straight into Tata’s portfolio, along with the eSuper Jolly light commercial vehicle that it developed together with Stellantis Pro One.
As for Tata Group, this will be the largest acquisition by the Tata Group in the automotive space, almost 2x the size of its $2.3B Jaguar Land Rover purchase in 2008.
Quotes:
“This is a logical next step following the demerger of the Tata Motors Commercial Vehicle business and will allow the combined group to compete on a truly global basis with two strategic home markets in India and Europe. The combined group’s complementary businesses and greater reach will enhance our ability to invest boldly. I look forward to securing the necessary approvals and concluding the transaction in the coming months.”
“By joining forces with Tata Motors, we are unlocking new potential to further enhance our industrial capabilities, accelerate innovation in zero-emission transport, and expand our reach in key global markets. This combination will allow us to better serve our customers with a broader, more advanced product portfolio and deliver long-term value to all stakeholders.”
Sources: Iveco Group press release, Reuters article
