Tata Motors has solidified its position on the global stage by acquiring a majority stake in Italy’s Iveco, forming the world’s fourth-largest commercial vehicle group with a staggering combined revenue of Rs 2.28 lakh crore.
Photograph: Fabian Bimmer/Reuters
Key Points
- Tata Motors’ acquisition of Iveco creates the world’s fourth-largest commercial vehicle group with a combined revenue of Rs 2.28 lakh crore (Euro 21 billion).
- Tata Motors acquired an 89.42 per cent stake in Iveco for approximately 3.43 billion euros, marking its largest acquisition since Jaguar Land Rover in 2008.
- N Chandrasekaran, Chairman of Tata Sons, has been appointed Chairperson and Senior Non-Executive Director of the combined entity, with Olof Persson continuing as CEO.
- The acceptance period for the voluntary tender offer will reopen from November 2 to November 6, 2026, for remaining shareholders.
- The combined entity anticipates significant increases in volumes, revenues, and margin profiles over the next five years.
Tata Motors and Italy-headquartered Iveco on Tuesday announced that the combined enterprise will be the world’s fourth-largest commercial vehicle maker with a revenue of Rs 2.28 lakh crore (Euro 21 billion).
The Indian auto major acquired an 89.42 per cent stake in Iveco for nearly 3.43 billion euros post the initial settlement of its cash tender offer, even as the buyout continues.
A Landmark Acquisition for Tata Motors
The acquisition of Iveco, making it an indirect subsidiary of the Indian auto major, will be Tata Motors’ biggest since it bought Jaguar Land Rover from Ford in 2008. Iveco Group employs 33,000 people and operates 16 industrial sites and 22 R&D centres.
The settlement follows the completion of the acceptance period of the voluntary tender offer, under which Tata Motors offered EUR 14.4 per share in cash for Iveco’s common shares.
The acceptance period will reopen for five trading days from November 2 to November 6, 2026, allowing shareholders another opportunity to tender their shares.
Settlement of shares tendered during this period will take place on November 13.
Leadership and Future Outlook
Addressing a global press meet at Iveco’s headquarters in Turin, Italy, Tata Sons Chairman N Chandrasekaran highlighted the scale of the combined enterprise and the enormous growth opportunity.
“We see the volumes increasing over the next five years, and we see the revenues significantly increasing, and also the margin profile increasing,” Chandrasekaran shared.
Tata Motors Managing Director and CEO Girish Wagh refused to give a timeline on Iveco’s delisting from Italy’s stock exchanges, but said it will happen “soon”.
Tata Sons Chairman N Chandrasekaran has been appointed as Chairperson and Senior Non-Executive Director, and Olof Persson will continue as Chief Executive Officer.
Tata Motors’ PB Balaji and Girish Wagh have joined the board as non-independent non-executive directors.
