Italy Gives Conditional Green Light to Tata Motors-Iveco Deal: Report

Italy has given conditional approval to the sale of Iveco Group to Tata Motors Ltd, according to a Reuters report. As per the report, the deal is valued at €3.8 billion ($4.36 billion) and will move forward after certain conditions set by the Italian government are met. The agreement is expected to be completed by 2026.

Ownership and Transaction Details

Iveco, based in Turin, Italy, is controlled by the Agnelli family through their investment company Exor, which holds a 27.1% stake and 43.1% of voting rights. As part of the sale, Exor will transfer its entire stake in Iveco to Tata Motors. 

Before finalising the transaction, Iveco will sell its defence division to the Italian state-backed defence group Leonardo, separating its defence operations from the commercial business.

Company Scale and Combined Business

The deal would combine Tata Motors and Iveco’s operations, creating a company with annual sales of over 540,000 units and estimated revenues of €22 billion. Iveco makes trucks, buses, and engines, while Tata Motors has a presence in Asia and Africa through its commercial and passenger vehicle divisions. The merger will expand Tata’s reach into Europe, where it currently has limited manufacturing presence.

Market and Employment Impact

Iveco is the smallest among Europe’s leading truck manufacturers, a group led by Volvo, Daimler, and Traton. It employs about 36,000 workers, including 14,000 in Italy. The conditional approval shows Italy’s scrutiny of major industrial deals involving domestic employment and production. Iveco’s shares, listed in Milan, have risen by about 25% since July, when early reports of Tata’s interest appeared. They last closed at €19.01.

Financing and Expected Outcome

In August, Tata Motors raised over ₹10,000 crore and plans to secure another €1 billion through equity over the next year to fund the acquisition. Once completed, the deal will make Tata Motors the fourth-largest heavy truck manufacturer globally, moving up from 6th place before the acquisition.

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Tata Motors Share Price Performance 

As of November 10, 2025, 9:54 AM, Tata Motors share price was trading at ₹410.60, a 1.21% increase from the previous closing price.

Conclusion

The transaction now moves to the implementation phase, pending regulatory and procedural approvals, before its expected completion in 2026.

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