Iveco Group N.V. , an international leader in commercial vehicles and mobility, and Tata Motors Ltd, a global automotive leader, jointly announced the commencement of the voluntary tender offer by TML CV Holdings B.V. for all issued common shares of Iveco Group at a price of €14.1 (cum dividend) per common share in cash.
This follows the approval for the offer from the Italian market regulator. The offer has been made by a Tata Motors step down subsidiary.
The acceptance period runs from September 7, 2026 to October 26, 2026.
“The Iveco Group Board of Directors unanimously supports the Transaction, recommends the Offer for acceptance by the shareholders of Iveco Group and recommends Shareholders to vote in favour of the resolutions relating to the Offer at the EGM,” Tata Motors said in a filing.
Iveco Group will hold the EGM on October 16, 2026 to take shareholders’ approval.
Exor N.V., Iveco Group’s largest shareholder, has irrevocably committed to support the offer and tender its shareholding representing approximately 27.06% of the common shares and 43.19% of all voting rights.
Girish Wagh, managing director and CEO of Tata Motors Ltd said, “The commencement of the tender offer marks an important milestone in bringing together two highly complementary organisations with a shared commitment to excellence, innovation and customer success.”
“By combining our respective strengths, capabilities and market presence, we have the opportunity to build a stronger, more globally competitive commercial vehicle business that is better positioned to serve customers, invest in future technologies and create sustainable value for all stakeholders,” he said.
“We have immense respect for Iveco Group’s heritage, talented people and trusted brands, and we look forward to supporting their continued growth and success. We believe the tender offer presents a compelling value proposition for Iveco Group shareholders and look forward to its successful completion,” he added.
Olof Persson, CEO of Iveco Group said, “The many benefits of this transformational combination are clear. By creating a major new force in global commercial vehicles, we will unlock the significant advantages of increased scale and reach, accelerate innovation and bring even more industry-leading products to customers worldwide.”
“The complementary nature of our two businesses further enhances the rationale of the transaction, supporting long-term opportunities for our employees, strengthening prospects for our suppliers and partners, and reinforcing the foundations for continued growth. Given these strategic benefits, together with the attractive value offered to shareholders, our Board unanimously supports and recommends the tender offer,” he added.
The offer values Iveco Group at approximately €3.82 billion. Iveco Group’s headquarters will remain in Turin, Italy.
The offeror is to support and accelerate Iveco Group’s existing strategy and to ensure the long-term interests of all its stakeholders, including employees, suppliers and customers.
“The Offeror and Iveco believe that having Iveco operate as a wholly privately owned subsidiary is key to the sustainable success of Iveco’s business and long-term value creation,” Tata Motors said.
All the required competition clearances, FDI clearances, FSR clearance and prior authorisations have been obtained.
The offer is subject to certain customary conditions, including a minimum acceptance level of 95% of the common shares, to be automatically reduced to 80% if the shareholders adopt the back-end resolution at the EGM.
The offer brings together two businesses with highly complementary product portfolios and capabilities and with substantially no overlap in their industrial and geographic footprints, creating a stronger, more diversified entity with a significant global presence and sales of over c.590k units per year, a press release said.
Together, Iveco and the commercial vehicle business of Tata Motors have combined revenues of €21 billion (₹2,28,000 crore split across Europe (46%), India (32%), South America (8%) and Rest of the World (14%) with attractive positions in emerging markets in Asia and Africa.
“The combined group will be better positioned to invest in and deliver innovative, sustainable mobility solutions by leveraging both supplier networks to serve customers globally. It will also unlock superior growth opportunities and create significant value for all stakeholders in a dynamic marketplace.”
Furthermore, in the context of the ongoing, rapid transformation of the global commercial vehicle industry, the strategic combination of the commercial vehicle business of Tata Motors and Iveco Group will transform both entities, creating a robust platform with a global customer base and geographically diverse footprint, Tata Motors said.
“The new company will be able to drive better operating leverage by spreading its capital investments over larger volumes, generating operating efficiencies and reducing the cash flow volatility inherent in the commercial vehicles sector. It will also enable the capabilities of Iveco Group’s successful powertrain business, FPT, to be further enhanced.”
As per the filing, the offeror will respect the existing rights and benefits of the employees of Iveco Group, including those outlined in the relevant employment and pension agreements and plans as well as existing arrangements with employee representative bodies.
“The offeror does not envisage any reduction of the workforce of Iveco Group as a direct consequence of the combination. The offer is intended to achieve the acquisition of 100% of the Common Shares and the Delisting of Iveco Group from Milan stock exchange.”
Published – September 05, 2026 08:15 am IST
