Tata Motors Surpasses 80% Stake in Iveco Takeover Bid

Tata Motors has cleared a significant milestone in its pursuit of Italian truck manufacturer Iveco, achieving acceptances for 87.81 percent of the company's shares under its takeover offer. This acceptance rate exceeds the critical 80 percent threshold required for the acquisition, increasing Tata Motors' ownership stake in Iveco to 89.42 percent.

The €3.91 billion offer marks a strategic effort by Tata Motors to broaden its global footprint and diversify its product range. The Indian commercial vehicle maker aims to leverage Iveco's established market presence across Europe, Latin America, and Asia-Pacific, along with its production facilities in multiple countries including China, Russia, and Australia.

Initially announced in July of the previous year, the acquisition process encountered several hurdles over the past 15 months. During an extraordinary general meeting held on October 16, approximately 53 percent of shareholders voted in favor of the deal, 12 percent opposed it, and 35 percent abstained. The shareholders also approved reducing the minimum tender acceptance threshold from 95 percent to 80 percent, facilitating smoother progress for the bid.

According to an official filing by Iveco, on the final day for acceptances, October 26, the company received 97,078,765 applications, bringing total acceptance requests to 238,157,212 shares. The final results of the tender offer will be disclosed before the market opens on October 29, with plans to reopen the offer between November 2 and 6.

The tender offer, initiated on September 7 by TML CV Holdings—a wholly owned indirect subsidiary of Tata Motors—proposes a price of €14.10 per common share, plus an additional €0.30, both cum dividend. The aggregate offer price totals €14.40 per share.

Originally expected to close by June this year, the deal faced delays due to regulatory approval processes. For Tata Motors, whose commercial vehicle segment currently generates nearly 90 percent of its revenue domestically, acquiring Iveco represents a pivotal move into international markets and new product categories.

Combined, Tata Motors and Iveco are projected to achieve annual sales exceeding 540,000 vehicles and revenues surpassing $25 billion. Iveco’s annual revenue stands around €10 billion, and its portfolio includes electric buses, electric light commercial vehicles, and alternative fuel technologies—assets that will significantly enhance Tata Motors’ offerings.

Industry analysts suggest the acquisition could nearly triple Tata Motors’ commercial vehicle revenue, growing it from approximately Rs 77,000 crore to over Rs 2 trillion. This expansion aligns with broader trends in the global automotive sector, where companies seek to strengthen their position by integrating electric and alternative fuel vehicles to meet evolving market demands and regulatory standards.

As the integration proceeds, Tata Motors is expected to benefit from Iveco’s widespread network spanning 160 countries, enabling the Indian firm to accelerate its international growth and innovation initiatives. The successful crossing of the 80 percent acceptance barrier marks a notable step toward completing the acquisition and reshaping Tata Motors’ presence in the commercial vehicle industry.