Truck manufacturer Iveco is now officially part of Tata Motors

Tata Motors has completed the first phase of acquiring Iveco. Through its Dutch subsidiary TML CV Holdings, the Indian conglomerate now holds approximately 89.42 percent of the company’s share capital. As a result, the Italian commercial vehicle manufacturer officially belongs to Tata Motors now.

Image: Iveco

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Since July 2025, it has been known that Tata Motors intends to acquire Iveco Group’s commercial vehicle business. Officially, the bid is made by a company based in the Netherlands, but it is fully owned by Tata. Last year, both parties signed a final agreement stating their goal of creating a “global champion” in the commercial vehicle sector, present in Europe, India, and the Americas, with a focus on sustainable and emission-free transportation.

The acquisition is now complete. A majority of shareholders have accepted Tata Motors’ voluntary takeover offer. Additionally, there is another deadline this week (through November 6) for shareholders who have not yet sold their shares and wish to do so at a price of 14.40 euros per share. The acceptance rate for the offer stands at 87.8 percent so far. At Iveco’s general meeting on October 16, a minimum acceptance threshold of 80 percent of the ordinary shares was set — a threshold that has long since been exceeded. Thus, Iveco now officially belongs to Tata Motors.

Tata raises offer from 14.10 to 14.40 euros

We recall that in mid-2025, Tata Motors submitted an initial offer of 14.10 euros per share, but raised it to 14.40 euros in October. As a result, the total value of the transaction increased from around 3.8 billion euros initially to approximately 3.91 billion euros now. The settlement for the current second tender period, running from November 2 to 6, is scheduled for November 13. At that time, Tata’s stake is set to increase further potentially.

Iveco has announced that the acquisition will also bring changes to its governance structure. The board of directors (“Iveco Group’s Board”) will now consist of six members. Natarajan Chandrasekaran, chairman of the Tata Group, will serve as chairman. The current Iveco CEO, Olof Persson, will also sit on the board as an executive director. P. B. Balaji and Girish Wagh from Tata Motors will be additional board members. Independent directors Günter Butschek and Charles Nichols will also be part of the board. On October 21, Damiano Cretarola was appointed as the new finance director, taking over the role from Anna Tanganelli on November 2.

Iveco’s defense business now belongs to Leonardo

Before Tata Motors' current acquisition, Iveco had already separated its defense business earlier in the year and sold it to the Italian defense and technology company Leonardo for around 1.6 billion euros.

In the commercial vehicle sector, the merged group of Tata and Iveco is expected to achieve annual sales of over 590,000 vehicles and projected revenue of around 21 billion euros, distributed across Europe (46%), India (32%), South America (8%), and the rest of the world (14%). This was announced today, November 3, by Olof Persson, Iveco's CEO, at a press conference:

Tata and Iveco plan to share factories among other things.

The partnership is primarily aimed at advancing innovations in zero-emission transportation. Tata and Iveco plan to leverage their respective supplier networks and industrial capabilities to expand electric mobility solutions worldwide. Iveco’s powertrain division, FPT Industrial, will play a key role in this effort. Until now, Iveco has been primarily controlled by the Agnelli family through the Exor holding company, which held 27.1 percent of the shares but 43.1 percent of the voting rights.

Tata Motors already controls Jaguar Land Rover in the passenger vehicle sector, but it had virtually no presence in the European commercial vehicle industry and no manufacturing facilities. Therefore, acquiring Iveco also means purchasing factories and market share in Europe. Iveco, for its part, generated 74 percent of its revenue from Europe recently and is likely to benefit from international expansion under Tata’s leadership.

Iveco was considered a potential acquisition target

"By merging with Tata Motors, we unlock new potential to further enhance our industrial capabilities, accelerate innovation in zero-emission transportation, and expand our presence in key global markets," said Olof Persson, CEO of the Iveco Group, when the acquisition plans were announced just over a year ago. However, the manufacturer, which is one of the smallest in Europe's commercial vehicle industry, had already been considered a potential acquisition target for some time.

Iveco’s board of directors unanimously approved Tata’s offer, stating that it served the best long-term interests of the company and its stakeholders. In return, Tata Motors agreed to retain Iveco’s factories and jobs while keeping the company’s headquarters in Turin. Both parties also signed a series of non-financial commitments that will remain in effect for two years after the transaction closes and cover aspects such as working conditions and investment plans. Iveco employs around 33,325 people as of the end of 2025, including nearly 14,000 in Italy.

“Commitment to sustainable transportation solutions”

Girish Wagh, Executive Director at Tata Motors, emphasized the strategic importance of the merger a year ago: “By combining the strengths of both companies, we are opening new paths for operational excellence, product innovation, and customer-focused solutions. This partnership not only enhances our ability to meet diverse mobility needs in various markets but also strengthens our commitment to sustainable transportation solutions that align with global megatrends.”

The Indian company itself separated its passenger vehicle and commercial vehicle businesses in 2024 so that the two entities could pursue their respective strategies and achieve higher growth with greater flexibility. Natarajan Chandrasekaran, chairman of Tata Motors, said acquiring Iveco is “a logical next step” and would “enable the combined group to compete on a truly global scale with two strategic home markets in India and Europe.”

ivecogroup.com (press release), ivecogroup.com via eurotransport.de, auto.economictimes.indiatimes.com