Tata Motors announced the completion of the initial phase of its tender offer for the Italian commercial vehicle manufacturer Iveco Group, acquiring an 89.42 percent stake and thereby bringing the European company under its control. The process of buying out the remaining minority shareholders is ongoing.
The acquisition was executed through a wholly-owned indirect subsidiary of Tata Motors, TML CV Holdings B.V., and involved 238.16 million shares at a price of 14.40 euros per share. According to regulatory filings, following this transaction, Iveco became an indirect subsidiary of Tata Motors.
This development occurred amid objections from some minority shareholders regarding the valuation of Iveco. Investment activist Petrus Advisers questioned the proposed price, arguing that it undervalued the company. In response, Tata Motors increased its offer price from 14.10 euros to 14.40 euros per share earlier this month.
Since approximately 10.58 percent of Iveco's common equity, excluding treasury shares, remains outside Tata Motors' ownership, the company will resume the tender offer for five trading days—from November 2 to November 6. Calculations for shares offered during this additional period are scheduled for November 13.
Tata Motors stated that more detailed information about the post-offer process, including potential voluntary buyback procedures, Dutch legal buyouts, or subsequent spin-off and liquidation, will be announced in due course.
The completion of the initial settlement also brought changes to Iveco's board structure and corporate governance. N Chandrasekaran, Chairman of Tata Sons, has been appointed as the non-executive Chairman of Iveco, while P B Balaji, CFO of Tata Motors Group, and Girish Wagh, CEO of Tata Motors, joined the board as non-executive directors.
Olof Persson will continue to serve as Iveco's Chief Executive Officer. The six-member board also includes independent directors Gunther Butschek and Charles Nichols.
Iveco stated that all outstanding preferred voting shares were bought out without compensation, eliminating their presence after the acquisition. The company also postponed the announcement of third-quarter financial results to November 3 instead of November 5.
This acquisition marks a significant step in Tata Motors' international expansion into the commercial vehicle segment, merging its presence in India and emerging markets with Iveco's established operations in Europe and other international markets.
Iveco, which reported revenues of 13.43 billion euros for calendar year 2025, employs approximately 33,000 people and operates 16 industrial sites and 22 research and development centers. Its business covers trucks, buses, powertrains, and vehicle financing.
Tata Motors noted that this merger will create a more diversified global commercial vehicle business with complementary product portfolios and limited overlap in geographical and industrial operations.