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Bond Market News
Tata Motors to Acquire Truck Maker Iveco for $4.5bn
July 30, 2025
Tata Motors is set to acquire Italian truck maker Iveco from the Agnelli family’s holding company Exor for $4.5bn. This is the largest automotive acquisition by any Tata Group company and the second-biggest overall after Tata Steel’s $12bn acquisition of Corus in 2007. The deal excludes Iveco’s defence division which could be separately spun-off or sold to a local company. Tata plans to acquire 27.1% from Exor and launch a tender offer to buy out minority shareholders, aiming for 100% ownership of the non-defence business. The acquisition will provide Tata Motors access to advanced technology, global markets, and a broader product portfolio, strengthening its commercial vehicle (CV) segment. Iveco generates 74% of its revenue in Europe, with additional presence in North and Latin America, while Tata’s CV revenues are mostly India-based.
The transaction is being routed through a Tata-owned Dutch entity. The deal follows weeks of exclusive negotiations and is structured to satisfy Italian government sensitivities over defence assets. Analysts say that if successful, the acquisition could triple Tata’s CV revenues from INR 750bn ($8.6bn) to over INR 2tn ($22.9bn). Margins are however expected to remain thin as Tata reports CV EBIT margin at 9.1% vs. Iveco’s 5.6%. Tata Motors is also undergoing a demerger to separate its Commercial Vehicles (CV) and Passenger Vehicles (PV) businesses into two separate listed companies.
Tata Motors’ 4.35% 2026s traded stable at 99.48, yielding 4.97%.
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