Tata Motors To Buy Italy's Iveco For €3.8 Billion, Excluding Defence Business

Tata Motors Ltd. on Wednesday said it will fully acquire Italy-based Iveco Group N.V. for €3.8 billion ($4.3 billion), excluding its defence business. The acquisition will be done at a cash consideration of €14.1 ($16.1) per share and is expected to close by April, the company said in an exchange filing.

The offer, to be made via TML CV Holdings Pte. Ltd. or a new Dutch subsidiary, is subject to at least 80% of shares being tendered. Tata Motors said the deal will help strengthen and diversify its portfolio and enable global competitiveness.

The automaker will acquire 271.22 million shares of Iveco. The offer price reflects a 22-25% premium to the volume-weighted average share price over the past three months, excluding the defence business valuation. Iveco's shares will be delisted from Euronext Milan after the deal.

Iveco designs and sells trucks, buses, commercial and defence vehicles, and powertrains. For 2023-24, it reported turnover of €15.29 billion ($17.47 billion), including its defence segment.