Tata Motors Acquires 89.42% Stake in Iveco, Creates World’s Fourth-Largest Commercial Vehicle Maker – NKTV

Tata Motors and Italy-based Iveco Group have announced the formation of a combined enterprise that will rank as the world’s fourth-largest commercial vehicle manufacturer, with an estimated annual revenue of approximately ₹2.28 lakh crore.

Tata Motors has acquired an 89.42 per cent stake in Iveco for approximately 3.43 billion Euro following the initial settlement of its cash tender offer. The acquisition process, however, remains ongoing.

The deal marks Tata Motors’ biggest acquisition since purchasing Jaguar Land Rover from Ford in 2008. Following the transaction, Iveco Group has become an indirect subsidiary of the Indian automobile major.

Iveco employs approximately 33,000 people and operates 16 industrial sites and 22 research and development centres worldwide.

The initial settlement follows the completion

The initial settlement follows the completion of the acceptance period for Tata Motors’ voluntary tender offer, under which it offered 14.4 Euro per share in cash for Iveco’s common shares. The acceptance period will reopen for five trading days from November 2 to November 6, 2026, providing shareholders another opportunity to tender their shares. The settlement for shares tendered during this period is scheduled for November 13.

Speaking at a global press conference at Iveco’s headquarters in Turin, Italy, Tata Sons Chairman N Chandrasekaran highlighted the scale and growth potential of the combined enterprise.

He said the group expects vehicle volumes and revenues to increase significantly over the next five years, alongside improvements in profit margins.

Tata Motors Managing Director and CEO Girish Wagh

Tata Motors Managing Director and CEO Girish Wagh declined to specify a timeline for Iveco’s delisting from Italian stock exchanges but indicated that the process would take place soon.

As part of the leadership restructuring, N Chandrasekaran has been appointed Chairperson and Senior Non-Executive Director, while Olof Persson will continue as Chief Executive Officer. Tata Motors’ PB Balaji and Girish Wagh have also joined the board as non-independent non-executive directors.

Strategic Significance of the Acquisition

The combination is expected to strengthen Tata Motors’ global commercial vehicle presence by bringing together two businesses with complementary geographical reach and product portfolios.

Tata Motors has a strong presence in India

Tata Motors has a strong presence in India and emerging markets across Asia, the Middle East and North Africa, offering commercial vehicles ranging from light cargo carriers to heavy-duty trucks, alongside passenger transportation solutions.

Iveco brings established capabilities in light, medium and heavy commercial vehicles, city buses and intercity coaches, particularly across Europe and Latin America. Its FPT business also adds expertise in conventional and alternative-fuel powertrain technologies.

The combined enterprise is expected to leverage these strengths to expand global market access, improve engineering capabilities and accelerate the development of next-generation mobility solutions.