- Tata Motors’ offer received acceptances representing 87.81 per cent of Iveco’s common share capital, clearing the revised 80 per cent threshold.
- The provisional results put Tata’s holding at 89.42 per cent, with final results due by October 29.
- The combined commercial vehicle business is expected to generate annual revenue of around €21 billion, excluding Iveco’s defense business.
Tata Motors’ takeover of Italian commercial vehicle maker Iveco has moved closer to completion after the offer secured acceptances for 87.81 per cent of Iveco’s common share capital, clearing the revised 80 per cent minimum threshold.
Provisional results announced on Monday (26) showed that Tata Motors now holds 89.42 per cent of Iveco’s common share capital, taking into account the company’s treasury shares. The final results are expected before the market opens on Thursday (29).
The offer was made through TML CV Holdings BV, a Tata Motors subsidiary, at a revised price of €14.40 per share, up from €14.10. The increase was announced on October 9 to compensate shareholders for delays in obtaining regulatory authorizations.
At the revised price, the 238.16 million shares tendered during the initial acceptance period are worth approximately €3.43 billion, or around $4 billion. The overall transaction has been valued at about €3.9 billion, equivalent to roughly $4.5 billion.
The offer ran from September 7 to October 26. Iveco said it is scheduled to reopen for five trading days from November 2 to November 6, giving shareholders who did not tender their shares another opportunity to participate. Payment for shares tendered during the initial period is scheduled for October 30, while payment for shares tendered during the reopening is expected on November 13.
Why the 80 per cent threshold matters
The offer initially faced a higher acceptance requirement, but Iveco shareholders approved resolutions at an extraordinary general meeting on October 16 that included reducing the minimum threshold from 95 per cent to 80 per cent.
The provisional acceptance results have now cleared that condition, bringing the acquisition closer to completion, subject to confirmation of the results and satisfaction of the remaining requirements.
Tata Motors had described its revised €14.40 offer as final, ruling out a further increase. The bid had faced opposition from some minority investors who questioned whether the earlier price adequately reflected Iveco’s prospects.
The acquisition excludes Iveco’s defense business, which is being kept outside the transaction. The focus is on combining the companies’ commercial vehicle operations, giving Tata Motors a larger presence in international markets.
Building a larger global commercial vehicle business
The deal would bring together Tata Motors’ established position in India with Iveco’s operations and distribution network across Europe and other international markets.
According to the companies’ offer documents, the combined commercial vehicle business is expected to generate annual revenue of approximately €21 billion, or around $24.4 billion, and sell more than 590,000 vehicles a year.
Europe is expected to account for around 46 per cent of combined revenue, India 32 per cent, South America 8 per cent and other markets the remaining 14 per cent.
The companies have complementary product portfolios and geographic footprints. Tata Motors has a strong position in India, while Iveco brings an established presence in Europe and Latin America. The combination could widen market access and strengthen offerings across commercial vehicle categories.
However, the strategic benefits will depend on how effectively Tata Motors integrates the businesses. Potential opportunities include sharing engineering expertise, improving procurement efficiency and reducing duplication in product development. The company will also need to manage the risks associated with combining operations across markets with different regulatory requirements and commercial conditions.
Iveco reported revenue of €15.3 billion in 2024, down 4 per cent from the previous year. Its performance highlights both the scale of the overseas business Tata is acquiring and its exposure to conditions in mature international markets.
With the acceptance threshold cleared, attention now turns to confirmation of the final results, settlement and the integration work required to turn the acquisition into long-term growth.
