Tata Motors announced an agreement to acquire Iveco Group for approximately €3.8 billion in an all-cash deal that excludes the European company’s defence business on 30 July, 2025. The proposed acquisition will be executed through a voluntary public tender offer at €14.1 per share, subject to regulatory approval and the completion of the defence division’s separation.
As previously reported by Trans.iNFO, Tata’s interest in Iveco was the subject of market speculation earlier this week, with reports indicating that Exor, the Agnelli family’s holding company and Iveco’s majority shareholder, was in discussions to divest the company’s civilian operations.
According to the transaction details published on 30 July, the deal is expected to close in the first half of 2026. Iveco Group’s defence business, comprising the IDV and ASTRA brands, is expected to be sold by 31 March 2026. If this does not occur on time, a spin-off and separate listing of the unit will be pursued to meet the acquisition conditions.
Tata Motors intends to combine Iveco Group’s commercial vehicle operations with its own, forming a new global player with annual sales of around 540,000 units and combined revenues of approximately €22 billion. The new entity will be split across Europe (50%), India (35%), and the Americas (15%), with additional positions in Asia and Africa.
There is minimal overlap between the two businesses in terms of products and geographies, which Tata believes will support integration without major restructuring. Under a set of agreed covenants, Iveco’s headquarters will remain in Turin, and no plant closures or workforce reductions are planned for at least two years following the settlement.
The transaction has the backing of Iveco’s board, which has unanimously recommended the offer to shareholders. Exor, the company’s largest shareholder with 27.06% of shares and over 43% of voting rights, has irrevocably committed to tender its shares and support the proposal.
Commenting on the acquisition, Iveco CEO Olof Persson said the combination would “allow us to better serve our customers with a broader, more advanced product portfolio and deliver long-term value to all stakeholders.”
Natarajan Chandrasekaran, Chairman of Tata Motors, added:
“This 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.”
In parallel, Iveco has entered into an agreement with Leonardo for the sale of its defence business, valued at €1.7 billion. Proceeds from this sale are expected to result in an extraordinary dividend to shareholders, estimated between €5.5 and €6.0 per share, though subject to final adjustments.
Mixed quarterly results and lowered full-year outlook amid subdued truck demand
The deal was announced alongside Iveco Group’s second-quarter results, which showed declines in revenue and profitability compared to the same period in 2024. Net revenues fell to €3.78 billion in Q2 2025, down from €3.92 billion a year earlier. Adjusted EBIT dropped to €215 million from €295 million, and adjusted net income declined to €106 million from €182 million.
Segment performance varied: the Bus and Defence divisions showed growth, while the Truck and Powertrain divisions recorded lower sales and margins. Truck revenues dropped by 8.9% year-on-year, and adjusted EBIT in that segment fell from €190 million to €129 million. Bus revenues rose 22.5% to €750 million, and Defence revenues increased by 19.3% to €340 million.
Free cash flow for industrial activities improved significantly in the quarter, reaching €145 million compared to a negative €98 million in Q2 2024. The company also reported available liquidity of €4.71 billion at the end of June.
Due to ongoing market softness in the light-duty segment and broader macroeconomic uncertainties, Iveco revised its full-year 2025 guidance downward. Group adjusted EBIT is now forecast to be between €880 million and €980 million, down from the previous range of €980 million to €1.03 billion. Industrial net revenues are expected to decline by 3–5% compared to 2024.
