Tata Motors Iveco Acquisition on Track, $4.45 Billion Deal Expected in Q1 FY27

Tata Motors has reiterated that its purchase of Iveco Group is proceeding as planned and the $4.45 billion transaction is slated for completion in the first quarter of FY27. 

Deal Overview and Timeline 

The acquisition, announced in July 2025, represents Tata Motors’ largest overseas purchase to date. The agreement values Iveco at $4.45 billion and aims to integrate the Italian commercial‑vehicle maker into Tata’s commercial vehicle business.  

The company has set a target to finalise the deal in Q1 FY27, aligning with the original timetable communicated at the announcement. 

Regulatory Approvals Status 

According to the chief financial officer, most regulatory clearances have been secured, with only a few jurisdictions pending. Approvals are expected to be in place by mid‑March, which matches the earlier schedule. The pending authorisations relate to competition and foreign investment rules in specific markets. 

Read More: Tata Electronics New Fab Plant to Provide Prototyping Hub for Indian Startups! 

Iveco Defence Business Separation 

Iveco’s defence division is excluded from the Tata Motors transaction. Shareholders received notice on January 23, 2026, that an extraordinary general meeting will authorise the distribution of proceeds from the sale of the defence unit to Leonardo S.p.A.  

The meeting is anticipated in the second half of March 2026. If the sale does not close by March 31, 2026, Iveco will pursue a statutory demerger to spin off the defence business into a new Dutch‑registered entity. 

Conclusion 

Tata Motors’ $4.45 billion acquisition of Iveco remains on track for a Q1 FY27 closure, with most regulatory approvals secured and the defence business separation proceeding as scheduled. 

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