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Time of India
3 hours ago
- Automotive
- Time of India
Tata Motors to drive Iveco's CV business for $4.4 billion, the group's biggest cross border M&A since Corus
Tata Motors has agreed to buy Turin-based truck maker Iveco from its principal shareholder, the Agnelli family, for $4.4 billion ($3.8 billion euros) to provide its commercial vehicle (CV) arm--soon to be listed independently--with much-needed technological heft and global access. This will be the largest acquisition by the Tata Group in the automotive space, almost twice the size of its $2.3 billion Jaguar Land Rover purchase in 2008 and the biggest by the conglomerate since it bought Corus in 2007 for $12 billion. ET was the first to report July 30 on the Iveco acquisition plan as well as the deal structure and timeline. Investors in Tata Motors weren't too pleased about the price tag, sending the stock down 3.5% to Rs 668.40 on the BSE at the close on Wednesday for a market cap of Rs 2.46 lakh crore. Shares of Iveco also closed flattish on Wednesday after surging 7.4% intraday on Tuesday. The stock has more than doubled this year, valuing the company at $5.68 billion. On Wednesday the stock touched a new 52-week high. Iveco manufactures commercial trucks, powertrains, buses and other specialty vehicles. Iveco Group clocked Euro 15.2 billion in turnover in CY24. It had said in May that it would press ahead with plans to either spin off its defence business by the end of 2025 or sell it, having already received offers from potential buyers. Iveco is demerging its business and the defence unit will be sold separately to Italian state backed Leonardo. Tata Motors will be buying 27.06% from Exor, the investment company of the Agnelli family, and launch a tender offer--similar to India's open offer mechanism--to buy out the all other smaller shareholder groups. Exor also controls 43.11% of the voting rights of the truck maker. The public offer is for all issued common shares of Iveco Group after the separation of that business, at a price of Euro 14.1 per share (including dividend but excluding any dividend distributed after the sale of the defence business). The offer price is at 34%-41% premium based on the volume-weighted average price for the three months to 17 July 2025 of Euro 16.02, but after deducting the Euro 5.5-6.0 per share estimated extraordinary dividend distributed to shareholders from the sale of the defence unit, the two companies said in a statement late on Wednesday evening. The Offer is aimed at acquiring 100% of Iveco's common shares with a subsequent delisting of Iveco Group from Euronext, Milan. The transaction is expected to close by April 2026, subject to all necessary formalities and regulatory clearance. '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,' said Natarajan Chandrasekaran, Chairman of Tata Group. 'The combined group's complementary businesses and greater reach will enhance our ability to invest boldly.' The Agnelli family, among the most influential in Europe, has interests in engineering, agriculture and automotive controls. It's a prominent stakeholder in Ferrari and also controls Stellantis, the Dutch automotive group that houses Fiat and auto brands such as Alfa Romeo, Chrysler, Citroën, Jeep, Maserati, and Peugeot. The Tata Group has a long association with the group. Fiat and Tata Motors had established a 50:50 joint venture, Fiat India Automobiles Ltd, which set up a plant for cars and engines for both brands at a factory in Maharashtra. Even though the relationship went through ups and downs, the Agnelli family had invited former the late Ratan Tata to join the global board of Fiat. "This strategically significant combination brings together two businesses with a shared vision for sustainable mobility,' said Suzanne Heywood, Chair of Iveco Group. 'The reinforced prospects of the new combination are strongly positive in terms of the security of employment and the industrial footprint of Iveco Group as a whole.' Tata Motors is routing the acquisition through a Dutch-based, wholly owned vehicle, said people aware of the matter. MUFG is the sole financing bank for the entire $4.4 billion (Euro 3.8 billion) acquisition. Tata Motors is taking a one-year bridge loan with guarantees from the company. Morgan Stanley is advising Tata Motors, while Goldman Sachs is working with the Agnelli family and Iveco. Clifford Chance, Greenberg Traurig were the legal advisors. The acquisition comes as the global CV industry is going through a rapid transition toward electric and hydrogen-powered drivetrains as well as autonomous driving, with China taking the lead. In June, Toyota and Germany's Daimler Truck finalised a roughly $6.4 billion merger of their heavy goods vehicle businesses in Japan last month. The German company is the world's largest truck manufacturer. Iveco, the smallest of the bigger European CV players, has long been a takeover candidate but the Italian government had vetoed previous attempts, considering the company a strategic national asset with an inhouse defence unit. In 2021, the government blocked an offer from Chinese rival FAW. At that point, the Agnellis controlled Iveco through their industrial conglomerate CNH Industrial. It was subsequently spun out and listed separately in early 2022. 'The government is closely following the evolution of the matter,' industry minister Adolfo Urso had said earlier this month, when news of the Tata-Agnelli talks were first reported by Reuters. 'In particular, we are doing this as regards the role of Iveco for Italy and its impact on jobs.' Urso said the government will hold a meeting on the potential deal on July 31. Keeping the defence business out of the deal would satisfy the Italian government's demand to keep the business in local hands. For Tata Motors, a deal will give access to technology, innovation and markets for the CV business, which has been a laggard. Europe accounts for 74% of Iveco's revenue although it's present in Latin America and North America as well. In comparison Tata's CV division generates 90% of revenue from India. A successful takeover could nearly triple commercial vehicle revenue from Rs 75,000 crore to over Rs 2 lakh crore, but margins remain a concern. Tata Motors' ebit margin is 9.1%, while Iveco's adjusted commercial vehicle margins hover around 5.6%, according to an analysis by ET Prime.
Al Etihad
9 hours ago
- Automotive
- Al Etihad
Tata Motors to buy Italy's Iveco for $4.4bn
ROME (AFP) Tata Motors of India will buy Italy's Iveco Group for 3.8 billion euros ($4.4 billion) in a bid to create a "global champion" in the commercial vehicles sector, the two companies said Wednesday. The deal excludes Iveco's defence division for armoured vehicles, which is to be sold to Italian defence and aerospace group Leonardo, in a 1.7-billion-euro deal announced earlier Wednesday. The combined company after Tata's takeover aims to sell around 540,000 vehicles a year for total annual revenues of 22 billion euros, of which half would come from Europe, 35 percent from India and 15 percent from the Americas. Tata and Iveco -- which also makes engines and buses -- said in a joint statement there was "no overlap in their industrial and geographic footprints, creating a stronger, more diversified entity" which would use a shared strategic vision to drive long-term growth. The deal is expected to close in the first quarter of 2026, underscoring the status of Tata in Europe, with Jaguar Land Rover notably a wholly owned subsidiary of Tata Motors. "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," Iveco's chairwoman Suzanne Heywood said in the statement. For Natarajan Chandrasekaran, chairman of Tata Motors, "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," he added in the statement. Iveco Group's CEO Olof Persson said the merger was "unlocking new potential to further enhance our industrial capabilities, accelerate innovation in zero-emission transport, and expand our reach in key global markets." He added: "This combination will allow us to better serve our customers with a broader, more advanced product portfolio and deliver long-term value to all stakeholders." Separately, Iveco's armoured vehicles unit will be sold to Leonardo, whose chief Roberto Cingolani said the move would make it a "reference player in the European land defence market". Leonardo has announced it plans to integrate its electronic systems, including new-generation combat sensors, into Iveco Defence vehicles to "guarantee optimal effectiveness of operational solutions offered".
Int'l Business Times
10 hours ago
- Automotive
- Int'l Business Times
Tata Motors To Buy Italy's Iveco For $4.4 Bn
Tata Motors of India will buy Italy's Iveco Group for 3.8 billion euros ($4.4 billion) in a bid to create a "global champion" in the commercial vehicles sector, the two companies said Wednesday. The deal excludes Iveco's defence division for armoured vehicles, which is to be sold to Italian defence and aerospace group Leonardo, in a 1.7-billion-euro deal announced earlier Wednesday. The combined company after Tata's takeover aims to sell around 540,000 vehicles a year for total annual revenues of 22 billion euros, of which half would come from Europe, 35 percent from India and 15 percent from the Americas. Tata and Iveco -- which also makes engines and buses -- said in a joint statement there was "no overlap in their industrial and geographic footprints, creating a stronger, more diversified entity" which would use a shared strategic vision to drive long-term growth. The deal is expected to close in the first quarter of 2026, underscoring the status of Tata in Europe, with Jaguar Land Rover notably a wholly owned subsidiary of Tata Motors. "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," Iveco's chairwoman Suzanne Heywood said in the statement. For Natarajan Chandrasekaran, chairman of Tata Motors, "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," he added in the statement. Iveco Group's CEO Olof Persson said the merger was "unlocking new potential to further enhance our industrial capabilities, accelerate innovation in zero-emission transport, and expand our reach in key global markets." He added: "This combination will allow us to better serve our customers with a broader, more advanced product portfolio and deliver long-term value to all stakeholders." Separately, Iveco's armoured vehicles unit will be sold to Leonardo, whose chief Roberto Cingolani said the move would make it a "reference player in the European land defence market". Leonardo has announced it plans to integrate its electronic systems, including new-generation combat sensors, into Iveco Defence vehicles to "guarantee optimal effectiveness of operational solutions offered".
Indian Express
11 hours ago
- Automotive
- Indian Express
Tata Motors to drive home Iveco takeover in Rs 38,000 crore landmark global deal
In a major acquisition abroad, Tata Motors to (TML) has proposed to acquire full control of European commercial vehicle maker Iveco Group N.V. – excluding its defence business — through a voluntary public cash tender offer estimated to cost euro 3.8 billion (around Rs 38,000 crore or US $ 4.35 billion). This is the biggest acquisition by Tata Motors after it acquired Jaguar Land Rover (JLR) from Ford in 2008 for $2.3 billion in an all-cash transaction. The envisaged voluntary tender offer will be made by TML CV Holdings Pte Ltd or a new limited liability company to be incorporated under Dutch law, which will be wholly owned, directly or indirectly, by Tata Motors. Iveco is based in Turin, Italy, and it forms part of Iveco Group N.V., which is incorporated in Amsterdam Tata Motors fell by 3.47 per cent to Rs 668.40 on the BSE on Wednesday. Iveco and Tata Motors on Wednesday announced that they have reached an agreement to create a commercial vehicles group with the reach, product portfolio and industrial capability to be a global champion in this dynamic sector. The completion of the offer is conditional on the separation of Iveco's defence business and, as such, the public offer is for all issued common shares of Iveco Group after the separation of that business, at a price of euro 14.1 (cum dividend, excluding any dividend distributed in relation to the sale of the defence business) per share in cash, TML said. The offer represents a total consideration of approximately euro 3.8 billion for Iveco Group, excluding Iveco's defence business and the net proceeds from the defence business separation. Together, Iveco and the commercial vehicle business of Tata Motors will have combined revenues of euro 22 billion (Rs 2,20,000 crore) split across Europe (50 per cent), India (35 per cent) and the Americas (15 per cent) with attractive positions in emerging markets in Asia and Africa. Tata Motors Chairman Natarajan Chandrasekaran 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,' he 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,' Suzanne Heywood, Chair of Iveco Group. Exor, Iveco's largest shareholder with approximately 27.06 per cent of Iveco's common shares and 43.11 per cent of all voting rights, has executed an irrevocable undertaking to support the offer and tender its shareholding and vote in favour of the resolutions that will be proposed at the EGM to be held in connection with the offer. Iveco was established following the demerger from CNH Industrial, which separated the Commercial and Specialty Vehicles, Powertrain, and related Financial Services businesses. '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,' TML said. Iveco is a commercial vehicles brand that designs, manufactures, and markets heavy, medium, and light-duty trucks. Iveco Group employs 36,000 people around the world and has 19 industrial sites and 31 R&D centres.
Mint
11 hours ago
- Automotive
- Mint
Tata Motors acquires Iveco's CV business for $4.36 billion in its largest deal
Tata Motors Ltd will acquire Italian truck and bus maker Iveco for $4.36 billion as it seeks to boost its commercial vehicle business ahead of the demerger expected by the end of this year. The country's largest commercial vehicle player will assume control of Italy's Agnelli family-backed Iveco, an acronym for Industrial Vehicles Corp., in its largest acquisition ever, the company announced on Wednesday. The Agnelli family founded the Fiat automotive group. The offer price is at a 34-41% premium to the volume-weighted average price for the three months to 17 July of 16.02 euros, said Tata Motors. The company acquired Jaguar Land Rover in 2008 for $2.3 billion. The acquisition is the second largest for the Tata Group after Tata Steel Ltd's purchase of Corus Group for $13.1 billion in 2007. '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," Natarajan Chandrasekaran, chairperson of the Tata Group, said. '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." As part of the deal, Tata will acquire the trucks, bus and powertrain businesses but not the defence business. Deal to be completed by June 2026 According to Tata Motors, the offer is expected to conclude by April to June 2026. The separation of the defence business is a key condition for the deal. Iveco will separately sell the defence business. The combined Tata Motors and Iveco group would have a significant global presence, with sales of over 540,000 units and over $25 billion in revenue. Europe would account for half of the combined group's total sales, followed by 35% in India and the remaining 15% in the Americas. Tata Motors has lined up $4.36 billion in funding from Morgan Stanley Bank, N.A., Morgan Stanley Senior Funding, Inc. and MUFG Bank, Ltd, said the statement. The company said that the acquisition will allow it to diversify its portfolio and expand internationally. '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, creating a stronger, more diversified entity with a significant global presence and sales of over 540k units per year," Tata Motors said. Iveco struggles in Europe Iveco posted revenue of 15.3 billion euros in 2024, a decline of 4% year-on-year. Put together, three verticals made up about 94% of the company's business last year. It has been struggling for growth as it gets about three-fourths of its revenue from Europe, where the business contracted about 7% in 2024. The truck vertical made up about 58% of the company's revenue, while powertrain contributed 21% and the bus segment accounted for 15%. The revenue of truck and powertrain businesses fell 6% and 17%, respectively, last year. For Tata Motors, the commercial vehicle business is the second largest contributor to overall revenues, contributing 17% to the topline in financial year 2025 at ₹75,055 crore. In FY25, the overall sales volume for the CV business declined 5% to 384,704 units for Tata Motors. Exports stood at 18,333 units, growing 3%. Iveco's board has unanimously approved the deal, stating that it is in the company's long-term interest. 'By joining forces with Tata Motors, we are unlocking new potential to further enhance our industrial capabilities, accelerate innovation in zero-emission transport, and expand our reach in key global markets," Olof Persson, CEO of Iveco Group, said on the deal. "This combination will allow us to better serve our customers with a broader, more advanced product portfolio and deliver long-term value to all stakeholders."
