Tata Motors and Iveco Group Announce Merger to Form Global Commercial Vehicle Leader!

In a transformative deal poised to reshape the global commercial vehicle industry, Tata Motors and Iveco Group N.V. have announced a €3.8 billion merger through a voluntary public tender offer. The offer will be made by TML CV Holdings PTE LTD, a wholly owned subsidiary of Tata Motors, and aims to acquire 100% of Iveco Group’s common shares, excluding its defence business. This strategic combination is designed to create a global powerhouse with unmatched scale, technological capability, and geographic reach across Europe, India, and the Americas.

The proposed merger comes with a cash offer of €14.1 per share for Iveco’s common stock, representing a 22–25% premium over the three-month volume-weighted average price prior to July 17, 2025. The offer excludes proceeds from the separation of Iveco’s defence unit, which is expected to be sold or spun off by March 31, 2026. If Tata Motors acquires at least 80% of Iveco’s shares, a pre-agreed share sale will allow it to gain full ownership, followed by Iveco’s delisting from Euronext Milan.

The combined entity will boast annual sales exceeding 540,000 units and projected revenues of approximately €22 billion. With two strategic home markets—India and Europe—the new commercial vehicle group will be better positioned to invest in zero-emission technologies, smart mobility, and scalable solutions across developed and emerging markets. The partnership is expected to unlock synergies in R&D, manufacturing, and supply chain integration, while enhancing the capabilities of Iveco’s FPT powertrain business.

Tata Motors Chairman Natarajan Chandrasekaran described the merger as a “logical next step” following the demerger of Tata’s commercial vehicle business, enabling bold global ambitions. Suzanne Heywood, Chair of Iveco Group, highlighted the alignment of both companies’ visions for sustainable mobility and industrial strength. Girish Wagh, Executive Director of Tata Motors, noted that the deal marks a strategic leap toward a future-ready commercial vehicle ecosystem, while Iveco CEO Olof Persson emphasized the potential to accelerate innovation in zero-emission transport.

The transaction has received unanimous support from Iveco’s Board of Directors and its largest shareholder, Exor, which has committed to vote in favor and tender its shares. Additional non-financial covenants related to governance, employee protection, and strategy will remain in place for at least two years after closing. Two independent board members will be appointed to monitor adherence to these agreements.

Pending regulatory approvals, including merger control and foreign direct investment clearances, the merger is expected to close by the second quarter of 2026. Together, Tata Motors and Iveco aim to create a resilient, future-focused enterprise capable of leading the commercial vehicle sector into a new era of innovation and sustainability.