The combination brings together complementary capabilities, global reach, and a shared strategic vision to drive long-term growth and unlock significant value
Iveco Group Board has recommended Tata Motors’ all-cash voluntary tender offer for Iveco Group common shares. Completion of the offer is conditional on the separation of Iveco Group’s defence business
Iveco Group N.V. is a European leader in commercial vehicles and mobility, and Tata Motors Limited is an Indian based global automotive leader, and together that have announced that they have reached an agreement to create a commercial vehicles group with the reach, product portfolio and industrial capability to be a global champion in this dynamic sector.
The envisaged recommended voluntary tender offer will be made by TML CV Holdings PTE LTD or a new limited liability company to be incorporated under Dutch law which will be wholly owned, directly or indirectly, by Tata Motors. The completion of the offer is reported to be worth approximately €3.8 billion for Iveco Group.
The combination of Tata Motors and the Iveco Group aims to transform both entities, creating a robust platform with a global customer base and geographically diverse footprint. The new company will be able to drive better operating leverage by spreading its capital investments over larger volumes, generating important efficiencies and reducing the cash flow volatility inherent in the commercial vehicles sector. It will also enable the capabilities of Iveco Group’s successful powertrain business, FPT, to be further enhanced. FPT engines are used in a wide range of agricultural and industrial engines across all of the CNH brands that include Case IH, New Holland and Steyr agricultural machines.
Natarajan Chandrasekaran, Chairman of Tata Motors: “This is a logical next step following the demerger of the Tata Motors Commercial Vehicle business and will allow the combined group to compete on a truly global basis with two strategic home markets in India and Europe. The combined group’s complementary businesses and greater reach will enhance our ability to invest boldly. I look forward to securing the necessary approvals and concluding the transaction in the coming months.”
Suzanne Heywood, Chair of Iveco Group: “We are proud to announce this strategically significant combination, which brings together two businesses with a shared vision for sustainable mobility. Moreover, the reinforced prospects of the new combination are strongly positive in terms of the security of employment and industrial footprint of Iveco Group as a whole.”
