The Indian Tata Motors will buy the Italian Iveco Group for about €3.8 billion, to create “a global player in the commercial vehicle sector”.
The announcement of the agreement was made by both companies this Thursday, in a statement, noting that it does not include the defense division of Iveco, the manufacturer of armored vehicles, which will be sold to the Italian defense and aerospace group Leonardo for €1.7 billion.
Tata’s offer will bring the two companies together with highly complementary product portfolios and capabilities and with virtually “no overlap in their industrial and geographical areas, creating a stronger and more diversified entity”, with a significant global presence aiming to achieve sales of over 540,000 units per year, with projected annual revenue of €22 billion, half of which will be achieved in Europe, 35% in India, and 15% in the Americas.
The agreement reached is expected to be completed in the first quarter of 2026, which will strengthen Tata’s position in Europe, with Jaguar Land Rover as a subsidiary of Tata Motors.
“This is a logical step following the spin-off of Tata Motors’ commercial vehicle business and will allow the combined group to compete on a truly global basis with two strategic markets in India and Europe. The combination of complementary businesses and the greater reach of the group will enhance our ability to invest boldly. I eagerly await the necessary approvals and the completion of the transaction in the coming months.”, said in a statement, Natarajan Chandrasekaran, chairman of Tata Motors.
