Tata Motors to acquire Iveco Group

4 August 2025

Iveco Group and Tata Motors Limited have announced an agreement to create a global commercial vehicles group. The Iveco Group, a key European commercial vehicle and engine manufacturer, controls such companies as Iveco, Iveco Bus, FPT Industrial, IDV, Astra, and Heuliez.

Under the agreement, Tata Motors would acquire all common shares of Iveco Group at a price of €14.1 per share in cash, representing a total consideration of approximately €3.8 billion for Iveco Group.

The completion of the deal is conditional on the separation of Iveco’s defense business. In a separate announcement, Iveco said it signed a definitive agreement covering the sale of its defense business, including the IDV and Astra brands, to Leonardo SpA for €1.7 billion.

The acquisition of Iveco by Tata Motors would bring together two businesses with highly complementary product portfolios and capabilities, creating a global entity with sales of over 540,000 units per year, the companies said in a press release. Together, Iveco and the commercial vehicle business of Tata Motors will have combined revenues of €22 billion split across Europe (50%), India (35%) and the Americas (15%) with “attractive positions” in emerging markets in Asia and Africa.

The acquisition is subject to customary approvals and clearances, and is expected to complete in the first half of 2026.

Source: Tata Motors