Tata Motors Secures Majority Control of Iveco in Multibillion-Euro Deal

Tata Motors has cleared a decisive threshold in its multibillion-euro acquisition of Italian truck maker Iveco Group, gaining overwhelming shareholder backing to take control of the commercial vehicle manufacturer. The public tender offer concluded on October 26 with provisional acceptances representing 87.81% of Iveco's ordinary share capital, easily exceeding the lowered 80% minimum acceptance condition. With the addition of previously secured stakes, Tata Motors' total holding is expected to reach 89.42%, establishing firm control over the Milan-listed industrial group.

The buyout offer was executed through TML CV Holdings, an indirect wholly owned subsidiary of Tata Motors. To overcome regulatory delays and satisfy hedge fund resistance during a fifteen-month review process, the Indian conglomerate increased its bid to 14.40 euros per share, combining an initial 14.10-euro cum-dividend base price with a supplemental 0.30-euro cum-dividend sweetener. The enhanced proposal valued the transaction at between 3.8 billion and 3.9 billion euros. In total, 238,157,212 shares were tendered, representing an aggregate value of approximately 3.43 billion euros.

Having satisfied all primary tender conditions, the transaction will now enter a brief reopening window designed to mop up remaining minority shares. Iveco stated that the acceptance period will reopen for five trading sessions spanning November 2 through November 6. Shareholders had previously approved reducing the minimum required acceptance threshold from 95% down to 80% to facilitate the deal, and Tata Motors intends to use its dominant position to complete a full delisting of Iveco from the public market.

The acquisition forms a global commercial vehicle powerhouse with significant geographical synergy. Tata Motors dominates heavy transport in India and Southeast Asia, while Iveco maintains strong market positions across Europe and Latin America, creating complementary networks with virtually no factory or territory overlap. According to industry analysis from GlobalData, the combined business will generate roughly 22 billion euros in annual revenue, positioning it alongside major global competitors like Traton and Volvo Group, though Italian media reports project the group could reach 25 billion euros in combined sales.

Tata Motors prevailed over several Western competitors, including American truck maker Packard, after winning the endorsement of Exor, Iveco's largest shareholder. Goldman Sachs advised Iveco, while Morgan Stanley served as lead financial advisor to Tata. As part of the regulatory approval granted conditionally by the Italian government, Tata Motors pledged to safeguard Iveco's domestic production facilities and employment levels for at least two years, committing 76 million euros in direct investments into the Italian operations. Iveco contributes 14,000 workers, 13 billion euros in revenue, and key engineering capabilities.

The European expansion represents the first major continental acquisition for Tata Sons, the sprawling Indian conglomerate that traces its origins back to 1868. Today, Tata Sons oversees 31 companies, more than one million employees, and over 160 billion euros in total revenue. Operationally, the Iveco deal was managed by P.B. Balaji, the former chief financial officer of Tata Motors who now leads Jaguar Land Rover, while Tata Sons and Tata Motors chairman Natarajan Chandrasekaran served as the primary architect behind the purchase.

The successful takeover unfolds amid growing friction inside Tata Sons' executive leadership. Chandrasekaran, who took the helm in 2017 as the first non-family chairman, faces escalating opposition from Noel Tata, who assumed leadership of the controlling Tata Trusts after Ratan Tata's death in 2024. The tension escalated after India's central bank directed Tata Sons to launch an immediate initial public offering to enhance corporate transparency. Chandrasekaran and a majority of board directors support an IPO to finance major initiatives, including a 14-billion-euro semiconductor plant, whereas Noel Tata opposes the listing over fears of diluted family oversight and has threatened legal action.