India’s Tata Motors is to acquire Iveco Group’s commercial vehicle business in a deal valued at 3.8 billion euros (A$6.7 billion) after the Italian truck-maker separately agreed to sell its defence division to Leonardo.
Leonardo will pay €1.7 billion including debt for the military vehicle business, according to a joint statement announcing the news this week.
The same statement did not indicate any immediate changes to operations and staffing levels of its truck sales operation in Australia as a result of the deal.
“The Offeror does not envisage any reduction of the workforce of Iveco Group as a direct consequence of the combination,” the statement said.
“The combined group will be better positioned to invest in and deliver innovative, sustainable mobility solutions by leveraging both supplier networks to serve customers globally.
“It will also unlock superior growth opportunities and create significant value for all stakeholders in a dynamic marketplace. By preserving each group’s industrial footprint and employee communities, this complementarity is also expected to foster a smooth and successful integration process.”
Iveco, which also makes buses, vans and engines, is controlled by Italy’s Agnelli family through its investment company Exor, which currently owns a 27.1 per cent stake in the Turin-based group, with 43.1 per cent of voting rights. Exor has agreed to hand its stake in Iveco to Tata.
The agreement will see Tata Motors’ TML CV Holdings make an all-cash voluntary tender offer for Iveco’s common shares at €14.1 per share, excluding its defence business. Completion is expected in the first half of 2026, following the separation and sale of Iveco’s defence unit which is expected to close by March 31, 2026.
Natarajan Chandrasekaran, Chairman of Tata Motors, said this deal 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.”
Tata Motors is headquartered in Mumbai and its notable subsidiaries include Jaguar Land Rover and Tata Daewoo.