30 July 2025: Tata Group’s automotive company Tata Motors is preparing to acquire Europe’s well-known truck manufacturer Iveco for approximately $4.5 billion (₹37,000 crore). This will be Tata Group’s second-largest acquisition after Tata Steel’s $12 billion Corus Group deal in 2007.
However, the news has not gone down well with investors, as Tata Motors’ shares dropped nearly 3.75% today. The stock has fallen over 45% from its 52-week high, even though the broader market (Sensex & Nifty) is trading in green.
Board meeting today, announcement expected
According to sources, Tata Motors and Iveco boards may approve the deal today (Wednesday). Following this, a formal announcement is likely. As part of the deal, Tata Motors will initially acquire a 27.1% stake in Iveco from Exor, the investment company of Italy’s renowned Agnelli family, which also holds 43.1% voting rights in Iveco.
Global expansion for Tata Motors
This acquisition is considered strategically important for Tata Motors. In 2008, the company acquired Jaguar Land Rover (JLR) for $2.3 billion. The Iveco deal surpasses even that. After the deal, Tata Motors’ commercial vehicle (CV) business could potentially triple — from ₹75,000 crore to over ₹2 lakh crore in revenue.
Defense business excluded
Before the acquisition, Iveco will spin off its defense division, which will not be included in the deal. Since Iveco’s defense arm is strategically sensitive for the Italian government, it has been excluded from the agreement.
Historic ties with Agnelli family
The Tata Group and the Agnelli family share a longstanding relationship. Tata once had a joint venture with Fiat India, and the Agnelli family controls Ferrari and Stellantis (the parent company of Fiat, Peugeot, Citroën, etc.).
Summary :
Tata Motors stock fell nearly 4% as reports emerged of its plan to acquire Italian truck maker Iveco for $4.5 billion, raising investor concerns.