Tata Motors Set to Acquire Italy's Iveco for $4.5 Billion in Biggest-Ever Deal

Tata Motors Ltd. is poised to acquire Italian truck maker Iveco for $4.5 billion, marking the Indian automaker’s largest-ever acquisition. The deal involves buying a 27.1% stake from Iveco’s principal shareholder Exor, the investment arm of the Agnelli family, and launching a tender offer for the remaining shares.

The boards of Tata Motors and Iveco are expected to meet Wednesday to approve the transaction, with a formal announcement likely soon after.

Exor currently holds a 43.1% stake in Iveco. Morgan Stanley is advising Tata Motors, while Goldman Sachs is advising Exor and Iveco.

Separately, Iveco is also in advanced talks to sell its defence unit to Leonardo SpA, while its commercial trucking business would be taken over by Tata Motors. The acquisition is expected to bolster Tata Motors' commercial vehicle footprint in Europe, strengthen its design and technology capabilities, and widen its appeal among European customers.

Iveco had earlier indicated plans to either spin off or sell its defence business by end-2025. Tata Motors previously had a joint venture with the Agnelli family's Fiat Motors in India.