Iveco Group, a European leader in commercial vehicles, and Tata Motors, a global automotive giant, have agreed to form a new commercial vehicles group. This partnership aims to create a powerful global player with a wide product range, strong industrial capabilities, and a significant presence in key markets.
Tata Motors will make a voluntary tender offer through TML CV Holdings PTE LTD or a new Dutch company, offering to buy all issued common shares of Iveco Group after separating Iveco’s defense business. The offer price is set at EUR 14.1 per share in cash, not including any dividend from the defense business sale. This values the deal at about EUR 3.8 billion, excluding the defense business.

Key Points of the Offer:
- Shareholders will also receive an estimated extraordinary dividend of EUR 5.5-6.0 per share from the defence business sale.
- The total offer represents a 22%-25% premium over the average share price in the three months before July 17, 2025.
- After deducting the extraordinary dividend, the premium rises to 34%-41%.
- The offer has full support from the Iveco Board and Exor N.V., Iveco’s largest shareholder, which has committed to tender its 27% stake.
- Tata Motors has secured financing for the entire offer, ensuring high certainty of completion.
- The offer includes non-financial commitments to protect employees, suppliers, and customers for at least two years after the deal closes.
- The deal is subject to regulatory approvals and is expected to complete in the first half of 2026, with the defence business sale closing by March 31, 2026.

A Stronger, More Diversified Global Group
By joining forces, Iveco and Tata Motors’ commercial vehicle business will create a company with little overlap in products or markets. The new group will have annual sales of over 540,000 units and combined revenues of about €22 billion (INR 2,20,000 crore+), with business split across Europe (50%), India (35%), and the Americas (15%). The group will also have strong positions in emerging markets in Asia and Africa.
The combined company will be better equipped to invest in innovative and sustainable mobility solutions, using both companies’ supplier networks to serve customers worldwide. This partnership is expected to unlock new growth opportunities, create value for all stakeholders, and ensure a smooth integration by preserving jobs and industrial sites.

As the commercial vehicle industry rapidly evolves, this strategic combination will give both companies a robust platform, a global customer base, and a diverse geographic footprint. The new group will benefit from greater operating leverage, improved efficiency, and reduced cash flow volatility. It will also strengthen the capabilities of Iveco’s successful powertrain business, FPT.
Overall, this partnership marks a major step forward for both Iveco Group and Tata Motors, positioning them as leaders in the global commercial vehicles market.