India’s Tata Motors will buy Iveco in a deal valued at 3.8 billion euros, the companies said on Wednesday, after the Italian truckmaker separately agreed to sell its defense business to the Italian state-backed group Leonardo.
Tata will launch an all-cash tender offer on Iveco’s shares, subject to the defense business sale, at 14.1 euros per share.
Exor, the investment company of Italy‘s Agnelli family, has agreed to hand its 27% controlling stake in Iveco to Tata.
“The offer would bring together two businesses with highly complementary product portfolios and capabilities and with substantially no overlap in their industrial and geographic footprints,” Tata and Iveco said.
The combined group would have a significant global presence, with sales of over 540,000 units per year and revenues of around 22 billion euros.
The Indian manufacturer controls Jaguar Land Rover in the passenger car sector, but has virtually no presence, nor manufacturing footprint, in the European commercial vehicle industry.
Separately Leonardo has agreed to buy Iveco’s IDV defense unit, giving the business an enterprise value of 1.7 billion euros, the two companies said on Wednesday.
The sale of the defense business cleared the way for Tata’s takeover bid for the rest of Iveco.
The defense transaction is expected to be completed in the first quarter of 2026, subject to regulatory approvals, Iveco and Leonardo said in separate statements.
The transaction will be financed through available cash resources, Leonardo said.
It told analysts that Germany’s Rheinmetall would acquire the defense trucks part of the Iveco operation in the coming months.
The deal is in line with Leonardo’s broader strategy of consolidation in the defense sector and will allow the defense group to address the increasing demand in Europe for land vehicles.
Iveco said that, once the IDV deal is completed, it planned to distribute its net proceeds to shareholders via an extraordinary dividend.
READ MORE
-
MPD: España matricula 134.063 vehículos electrificados hasta julio y supera todo 2024
Con un crecimiento interanual del 92%, el mercado de vehículos eléctricos e híbridos enchufables avanza a ritmo récord. El análisis de Mobility Portal Data destaca como Madrid y Cataluña concentran más del 50% del mercado.Aquí, todos los detalles del desempeño eMobility de julio.
-
The UK enters a “decisive” phase: can the network ease charging anxiety enough?
The government recently announced that it has reached 82,000 public charging points. This is a positive sign for those who own or are considering purchasing an EV. However, beyond focusing on quantity, the UK must also prioritize quality. Which areas have the least charger coverage?
-
From Amsterdam to Pamplona: Sungrow targets eMobility leadership with European I+D and local presence
With an innovation centre in the Netherlands and an operational hub in Spain, the global firm combines technology tailored to the European market with local stock, after-sales support, and integrated solutions. Its goal: to lead the EV charging infrastructure market with efficiency and proximity.