Mumbai: Tata Motors is looking to seal a deal for acquiring Italian truck brand Iveco soon, as both the company’s boards meet on Wednesday, July 30. According to sources, the Agnelli investment company, which owns a controlling stake in Iveco, will sell its 27.1% stake in the company, allowing the Tatas to make an open offer for the remaining shares later. Valued at $4.5 billion, this acquisition would be the second largest for the Tata Group, after its $12 billion deal to acquire Dutch steelmaker Corus in 2007.
This deal will not include Iveco’s defence business, which the company aims to spin off first. Iveco is the smallest European commercial vehicle brand, and an acquisition could help the Tatas gain a foothold not only in Europe but also in Latin America and North America. The company could also gain access to crucial technologies for its commercial vehicle segment, which currently generates 90% of its revenues from India.
Though Tata Motors’ commercial vehicles business has grown consistently over the years, the company will have to figure out a way to boost Iveco’s sales even as its margins are reportedly lower than Tata’s. Last year, Tata Motors spun off its commercial vehicles division to create TML Commercial Vehicles Limited (TMLCV), as the company aimed to enhance focus and boost efficiency for both its brands.
Tata Motors had earlier acquired Jaguar Land Rover (JLR) from Ford Motors in 2008 for $2.8 billion and turned it around since. It did the same with its passenger vehicle business, recently leapfrogging Maruti Suzuki to achieve a market share of 13.9% in 2025 from an all-time low of 4.6% in 2016. Though the acquisition hasn’t been finalised yet, and can get cancelled, Iveco’s shares have seen a 7.4% rise in intraday trades after the news broke out on Tuesday.
