India’s Tata Motors will acquire Italian truckmaker Iveco Group in a €3.8 billion ($4.36 billion) all-cash deal, the companies announced on Wednesday, following a separate agreement for the sale of Iveco’s defence business to Leonardo.
Tata Motors will launch a tender offer for Iveco shares at €14.1 per share, conditional upon the completion of the defence unit divestment. Iveco’s largest shareholder, Exor—the investment holding of Italy’s Agnelli family—has agreed to tender its 27% controlling stake in the offer.
“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 in a joint statement.
The proposed merger would form a group with annual sales exceeding 540,000 vehicles and revenues of approximately €22 billion. While Tata owns Jaguar Land Rover in the passenger car segment, it currently has minimal exposure to the European commercial vehicle market.
In a related development, Leonardo, the Italian state-backed defence firm, has agreed to acquire Iveco Defence Vehicles (IDV) in a transaction valued at €1.7 billion. The deal is set to be completed in the first quarter of 2026, pending regulatory approvals.
Leonardo confirmed it would fund the acquisition using its available cash. The company also informed analysts that Germany’s Rheinmetall is expected to purchase the defence truck segment of IDV in the coming months.
