Tata Motors to acquire Italy\’s Iveco for $4.4 billion

Tata Motors to acquire Italy’s Iveco Group for €3.8 billion

Deal Highlights

• Purchase price: €3.8 billion (≈$4.4 billion) for commercial vehicles, engines and buses.
• Excluded unit: Iveco’s defence division will be sold separately to Leonardo for €1.7 billion.
• Closing timeline: Transaction expected to finish in Q1 2026.

Defence Unit Separation

• Leonardo acquisition: The armoured‑vehicle business will become part of Leonardo’s European land‑defence portfolio.
• Integration plan: Leonardo will embed its electronic and sensor technology into the newly acquired Iveco Defence vehicles.
• Strategic impact: CEO Roberto Cingolani stated the move will make Leonardo a “reference player” in the European defence market.

Projected Annual Sales and Revenue

• Vehicle output: Combined firm aims to sell approximately 540 000 units per year.
• Revenue outlook: Total annual revenues are projected at €22 billion.
• Geographic split: 50 % from Europe, 35 % from India, 15 % from the Americas.

Strategic Vision and Growth

After the demerger of Tata Motors’ Commercial Vehicle business, the merger positions the new group as a strongly diversified global commercial‑vehicle champion. The complementary product portfolio is expected to accelerate innovation, particularly in zero‑emission transport, and expand reach in key worldwide markets.

Leadership Statements

• Natarajan Chandrasekaran (Tata Motors Chairman): “This logical next step will let the combined group compete on a truly global basis, with India and Europe as strategic home markets. The complementary businesses and greater reach will enhance our ability to invest boldly.”
• Suzanne Heywood (Iveco Chairwoman): “The reinforced prospects of the new combination are strongly positive in terms of the security of employment and industrial footprint of the Iveco Group as a whole.”
• Olof Persson (Iveco CEO): “This merger unlocks new potential to further enhance our industrial capabilities, accelerate zero‑emission transport innovation, and expand our reach in key global markets.”
• Roberto Cingolani (Leonardo CEO): “The acquisition will make Leonardo a reference player in the European land defence market.”