Tata retains Iveco's manufacturing base and workforce following acquisition, asserts Iveco chief executive.
In a significant move, Tata Motors has agreed to acquire Iveco's trucks and bus business for approximately €3.8 billion. The deal, excluding Iveco's defence business which is being sold separately to Leonardo, aims to create a global commercial vehicle champion by combining Tata's and Iveco’s complementary product portfolios, geographic reach, and industrial capabilities.
The planned integration process involves several steps. First, the separation or sale of Iveco’s defence business, valued at around €1.7 billion, to Leonardo must be completed by Q1 2026. This is a condition precedent to the tender offer. Next, a new company will be formed in the Netherlands, fully owned by Tata Motors, to make the offer and hold the combined commercial vehicle operations. Iveco Bus, Iveco trucks, FPT Industrial, and related units will be consolidated with Tata Motors’ existing commercial vehicle businesses, creating a global leader.
The acquisition is expected to bring several benefits. It will create a diversified global commercial vehicle company, expanding into new markets with a stronger footprint across Europe, India, and the Americas. The combined R&D capabilities, production networks, and market presence will be leveraged to scale development in electric and zero-emission vehicles. Economies of scale and synergies in procurement, manufacturing, and R&D are also anticipated.
Olof Persson, the CEO of Iveco, believes the integration process after the acquisition will be smooth and successful. Around 14,000 of Iveco's employees are based in Italy, and the industrial footprint of Iveco's trucks and bus business will be maintained by Tata Motors. The acquisition includes Iveco's employee communities.
The deal with Tata Motors, along with the sale of Iveco's IDV defense unit to Italy's Leonardo, is expected to "unlock superior growth opportunities and create significant value for all stakeholders". The acquisition does not involve Iveco's other business operations.
This strategic move by Tata Motors underscores the company's commitment to sustainable mobility and long-term growth. The acquisition is not related to Iveco's other business operations. Tata Motors has agreed to buy Iveco's trucks and bus business, marking a significant step in the global commercial vehicle industry.
- The acquisition of Iveco's trucks and bus business by Tata Motors aims to unlock superior growth opportunities and create significant value for all stakeholders, as mentioned.
- The integration of Iveco Bus, Iveco trucks, FPT Industrial, Tata Motors’ existing commercial vehicle businesses, and related units is expected to create a global leader in the commercial vehicle industry, as implied.
