Tata Motors has announced that an agreement has been reached to acquire Iveco in a move that will be carried out through a voluntary tender offer made by TML CV Holdings PTE LTD.
The acquisition does not involve Iveco’s defence division.
The deal is valued at 3.8 billion EUR and, once finalised, will be Tata Group’s second-largest acquisition following its purchase of the Corus Group in 2007 and its largest automotive acquisition since the purchase of Jaguar Land Rover (JLR) in 2008.
Natarajan Chandrasekaran, Chairman of Tata Motors, said:This is a logical next step following the demerger of the Tata Motors Commercial Vehicle business and will allow the combined group to compete on a truly global basis with two strategic home markets in India and Europe. The combined group's complementary businesses and greater reach will enhance our ability to invest boldly. I look forward to securing the necessary approvals and concluding the transaction in the coming months.
Suzanne Heywood, Chair of Iveco Group, said:We are proud to announce this strategically significant combination, which brings together two businesses with a shared vision for sustainable mobility. Moreover, the reinforced prospects of the new combination are strongly positive in terms of the security of employment and industrial footprint of Iveco Group as a whole.
The acquisition is expected to provide a platform for a wider European expansion for Tata Motors, with the company looking to utilise Iveco’s commercial vehicle (CV) technology across a wider market.
