India’s auto giant, Tata Motors, has acquired Iveco, Italy’s prestigious vehicle maker. The acquisition to be transacted at $4.50 billion is considered to be one of the largest yet for the Indian company.
The respective boards of Tata Motors and Iveco have agreed to the acquisition. In its presser, Iveco said that the acquisition would create a stronger, more diversified entity with a significant global presence,” and will be positioned to make sales of over 540K units of vehicles a year.
It’s also said that Iveco and Tata Motors’ commercial vehicle business will return combined revenues of 22 billion euros. The company will transact its business mostly in Europe, India, and the Americas, and also promote and expand its ventures in Asia and Africa.
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What has been said?
Natarajan Chandrasekaran, Chairman of Tata Motors: “This is a logical next step following the demerger of the Tata Motors Commercial Vehicle business and will allow the combined group to compete on a truly global basis with two strategic home markets in India and Europe. The combined group’s complementary businesses and greater reach will enhance our ability to invest boldly. I look forward to securing the necessary approvals and concluding the transaction in the coming months.”
Suzanne Heywood, Chair of Iveco Group: “We are proud to announce this strategically significant combination, which brings together two businesses with a shared vision for sustainable mobility. Moreover, the reinforced prospects of the new combination are strongly positive in terms of the security of employment and industrial footprint of Iveco Group as a whole.”
Girish Wagh, Executive Director of Tata Motors: “This combination is a strategic leap forward in our ambition to build a future-ready commercial vehicle ecosystem. By integrating the strengths of both organisations, we are unlocking new avenues for operational excellence, product innovation, and customer-centric solutions. This partnership not only enhances our ability to serve diverse mobility needs across markets but also reinforces our commitment to delivering sustainable transport solutions that are aligned with global megatrends. Together, we are shaping a resilient and agile enterprise, equipped to lead in times of transformative change.”
Olof Persson, CEO of Iveco Group: “By joining forces with Tata Motors, we are unlocking new potential to further enhance our industrial capabilities, accelerate innovation in zero-emission transport, and expand our reach in key global markets. This combination will allow us to better serve our customers with a broader, more advanced product portfolio and deliver long-term value to all stakeholders.”
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Tata Motors to raise funds for Iveco purchase via IPO
Tata Motors plans to generate 1 billion euros via an IPO and through investors. It will resort to Morgan Stein and MUFG to gain additional funds. Both Tata Motors and Iveco plan to complete the transaction by 2026.
The Tata Motors and Iveco deal boldly raises the former’s presence in commercial vehicle businesses. It will even make the Indian auto maker one of the largest commercial vehicle makers in the world.