The Agnelli family will divest its shareholding in Iveco, held through the investment company Exor, to Indian automotive giant Tata Motors in a deal valued at approximately 3.8 billion euros. The transaction was formally confirmed by Iveco and Tata in a joint statement issued around 6 pm Italian time on 30 July 2025. The agreement is conditional on the sale of Iveco Defence Vehicles, which is set to be acquired by Leonardo for 1.7 billion euros.
The move has received full backing from Iveco’s board of directors and includes an irrevocable commitment from its principal shareholder, Exor, which owns 27 per cent of the ordinary share capital and holds over 43 per cent of the voting rights. The offer is entirely in cash and, when factoring in the expected special dividend from the defence business sale—estimated between 5.5 and 6 euros per share—represents a premium of between 22 and 41 per cent over the three-month volume-weighted average share price prior to the announcement.
The merger between Tata Motors and Iveco will create a group with annual sales exceeding 540,000 vehicles and combined revenues of around 22 billion euros. The newly formed entity will be geographically diversified, with roughly 50 per cent of its turnover generated in Europe, 35 per cent in India and 15 per cent in the Americas, along with further room for growth in emerging markets across Asia and Africa. The statement highlights that the product portfolios of the two companies are complementary rather than overlapping, as are their respective industrial footprints. This alignment is expected to facilitate not only a smooth transition but also substantial synergies, enabling joint investment in sustainable technologies, zero-emission powertrains and innovative mobility solutions.
According to initial official remarks, the new group will retain its current manufacturing footprint and safeguard existing workforce communities. Suzanne Heywood, chair of Iveco Group, emphasised the strategic significance of the agreement as well as its importance for employment stability. Similar sentiments were expressed by Natarajan Chandrasekaran, chairman of Tata Motors, who described the deal as “the logical next step” following the separation of the commercial vehicles division from the rest of the Indian conglomerate.
The transaction remains subject to a number of conditions, including the receipt of antitrust and regulatory approvals at both European and international levels, the acquisition of at least 80 per cent of Iveco’s ordinary share capital (down from 95 per cent if specific shareholder resolutions are approved), and most crucially, the finalisation of the sale of Iveco Defence Vehicles, expected by March 2026. Once completed, the plan is to delist Iveco Group from Euronext Milan and convert it into a wholly owned subsidiary of the acquiring group, with the aim of ensuring stable governance and long-term growth.
