Tata Motors Takes Control of Iveco with 89.42% Stake Acquisition

On Friday, Tata Motors announced the completion of the first phase of its tender offer to acquire a controlling interest in Iveco Group, the Italian commercial vehicle manufacturer. The company now holds an 89.42 percent share in Iveco, effectively bringing the European firm under Tata Motors’ ownership. However, the process to purchase the remaining minority shares is still active.

This acquisition was executed through Tata Motors’ wholly owned subsidiary, TML CV Holdings B.V. Tata Motors acquired approximately 238.16 million shares at a price of €14.40 per share. With this transaction settled, Iveco officially became an indirect subsidiary of Tata Motors, as confirmed in a regulatory filing.

The deal has faced some resistance from minority shareholders who questioned the valuation of Iveco. Notably, activist investor Petrus Advisers expressed concerns that the offer price undervalued the company. Responding to this, Tata Motors raised the offer price from €14.10 to €14.40 per share earlier in the month to address these concerns.

Despite this progress, about 10.58 percent of Iveco’s common shares, excluding treasury shares, remain outside Tata Motors’ control. To acquire these shares, Tata Motors will reopen the tender offer for a period of five trading days, starting November 2 and ending November 6. The settlement for shares tendered during this window is expected on November 13.

Tata Motors has indicated that additional information about the post-offer phase, such as a possible voluntary purchase procedure, a Dutch legal squeeze-out, or options involving demerger and liquidation, will be provided in due course. No further changes to the offer price have been announced so far.

The completion of this initial acquisition phase has already led to adjustments in Iveco’s board and governance. Tata Sons Chairman N Chandrasekaran has been named the new chairperson of Iveco as a non-executive director. Additionally, Tata Motors Group Chief Financial Officer P B Balaji and Executive Director Girish Wagh have joined Iveco’s board in non-executive roles.

Iveco’s CEO, Olof Persson, remains in his position. The board consists of six members today, including independent directors Guenter Butschek and Charles Nichols.

In a corporate governance update, Iveco announced that all outstanding special voting shares have been repurchased without consideration, eliminating such shares following the takeover. The company has also moved forward its third-quarter financial results announcement to November 3, ahead of the original November 5 date.

This acquisition represents a significant milestone in Tata Motors’ international growth strategy within the commercial vehicle industry. It merges Tata’s strong presence in India and emerging markets with Iveco’s established footprint in Europe and other regions. Iveco reported revenues of €13.43 billion for the calendar year 2025. The company employs around 33,000 people worldwide and operates 16 manufacturing facilities alongside 22 research and development centers. Its product range covers trucks, buses, powertrains, and vehicle financing services.

Tata Motors has emphasized that this combination will create a more diversified global commercial vehicle business, with complementary product lines and minimal overlap in their geographic and industrial operations. This strategic alignment aims to strengthen Tata Motors’ position on the global stage and broaden its portfolio across multiple markets.