Tata Motors has announced its agreement to acquire Italian truck manufacturer Iveco for $4.5 billion. This acquisition marks the largest ever for Tata Motors and stands as the Tata Group’s second-biggest deal after the historic Corus acquisition, signaling a new era of international ambition and consolidated market power for the Indian giant.
The acquisition was finalized after board approvals from both Tata Motors and Iveco on July 30, 2025. Under the terms, Tata Motors will first purchase a 27.1% stake in Iveco from Exor; the Agnelli family’s investment firm, which currently holds 43.1% of the company’s voting rights.
Subsequently, Tata Motors plans to launch a tender offer for the remaining shares through a Dutch subsidiary, ultimately targeting full control of Iveco’s non-defense commercial vehicle business. Notably, the defense operations of Iveco will be spun off or disposed of separately, allowing the deal to proceed with a primary focus on civilian vehicle markets.
Advisors to the transaction include Morgan Stanley (for Tata Motors), Goldman Sachs and Clifford Chance (for Exor and Iveco), reflecting the scale and complexity of this international business maneuver.
Iveco, trailing major European truck companies like Volvo and Daimler, has long been viewed as a prime acquisition target thanks to its robust portfolio of trucks, buses, and engines. For Tata Motors, this acquisition bridges critical technology and market gaps, enabling faster innovation and scaling of global operations.
While the deal garnered enthusiasm in business circles, Tata Motors’ shares fell about 4% on the BSE, reflecting investor caution about the acquisition size, integration risks, and the profitability outlook of the European manufacturer. Nonetheless, the stock dip was offset by a 7.4% surge in Iveco’s share value as markets responded positively to fresh growth prospects for the Italian brand.
