Tata Motors is set to acquire Iveco’s commercial vehicle division in a deal worth €3.8bn (£3.3bn).
The completion of the offer is conditional on the separation of Iveco’s defence business, which it is understood is being sold separately for €1.7bn to Italian group Leonardo.
Iveco said its board of directors concluded that the offer from the Indian conglomerate was in its long-term interests and was recommending it to shareholders.
It added that together, both businesses would have combined revenues of c.€22bn (£19bn).
Tata Motors already owns Jaguar Land Rover and has manufacturing facilities in the UK and in Europe.
Olof Persson, chief executive of Iveco Group, said: “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.
“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.”
Natarajan Chandrasekaran, chairman of Tata Motors, added: “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.”
Added Will Shiers, editor of MT’s sister publication Commercial Motor: “This is a pretty big moment for the European truck industry. Iveco turned 50 this year. It’s not the oldest name on the market, but it’s built on decades of European heritage. And now it’s set to become part of an Indian group. Just another consolidation story? Or does this signal a shift in the centre of gravity for global truckmaking? Capital, confidence and long-term strategy are increasingly coming from the East. For Tata the deal offers European market access, driveline tech, and economies of scale. For Europe it raises questions about competitiveness, sovereignty and how much industrial leadership we’re willing to hand over.
“Will it work? That depends on executiion. But one thing is clear: the commercial vehicle landscape just changed.”
It is expected that completion of the sale of Iveco’s defence business will occur on 31 March 2026, with its commercial vehicle sale completed during Q2 2026.”
