Tata Motors to acquire Iveco Group in A$6.7 billion deal

Indian automotive company, Tata Motors, has announced it will acquire Italian commercial vehicle giant, Iveco Group, in a €3.8 billion (approximately A$6.7 billion) deal, creating a new global heavyweight in the truck and bus sector with combined annual sales of over 540,000 units and revenues of €22 billion (approximately A$39 billion).

Under the proposed deal, Tata Motors will launch an all-cash tender offer for 100 per cent of Iveco Group’s common shares through a newly formed Dutch entity, TML CV Holdings PTE LTD.

The deal excludes Iveco’s military-focused brands, IDV and ASTRA, which will transfer to European defence and aerospace leader, Leonardo, for €1.7 billion (A$3 billion). That transaction is expected to close by March 2026 and paves the way for the Tata-Iveco deal to proceed.

The acquisition signals Tata Motors’ ambition to expand beyond its dominant Indian market. Together, Iveco and Tata Group’s commercial vehicle business is expected to deliver a total revenue of €22 billion split across Europe (50 per cent of sales), India (35 per cent), and the Americas (15 per cent). The group will also be eyeing emerging markets in Asia and Africa.

The merger brings together two largely non-overlapping businesses — Tata Motors' strength in light and medium-duty trucks and buses in Asia and Iveco’s light, medium and heavy-duty commercial vehicles and powertrain business (FPT) in Europe.

Iveco’s brands such as Daily, Eurocargo, and S-Way will continue, with the company’s global headquarters remaining in Turin, Italy.

Tata Motors Chairman, Natarajan Chandrasekaran, said the move “allows the combined group to compete on a truly global basis.”

“The combined group's complementary businesses and greater reach will enhance our ability to invest boldly,” he said.

Tata Motor’s Executive Director, Girish Wagh, described the merger as a “strategic leap forward” toward building a future-ready commercial vehicle ecosystem.

“This partnership not only enhances our ability to serve diverse mobility needs across markets, but also reinforces our commitment to delivering sustainable transport solutions that are aligned with global megatrends,” he said.

Chair of Iveco Group, Suzanne Heywood, said the merger will reinforce Iveco Group’s employment security and industrial footprint.

Iveco CEO, Olof Persson, said the deal “unlocks new potential” to expand industrial capabilities and innovation in zero-emission transport.

To smooth the transition, Tata and Iveco has agreed to a series of non-financial covenants. Iveco’s operations, workforce, and production sites are to remain intact for at least two years following the acquisition. Tata has also committed to maintaining Iveco’s corporate identity, branding, and long-term growth strategy, including no direct job losses or plant closures.

Iveco’s board including its largest shareholder Exor (which owns just over 27 per cent of shares) unanimously supports the offer and will continue to drive decisions for long-term growth and competitiveness of the business. Exor has pledged to tender its stake and transfer its special voting shares back to Iveco.

The tender offer is expected to formally launch following regulatory filings in Europe and elsewhere, with the sale of Iveco’s defence business to Leonardo targeted for completion by March 2026.

Subject to approval, the Tata-Iveco deal is expected to close by mid-2026.

Following the acqusition, Iveco Group will be delisted from the Milan stock exchange and become a wholly owned subsidiary.

Trucksales will continue to monitor the developments of this merger and what it means for Australian truck buyers and operators.