The sale of Iveco to the Indian Tata Group is nearing completion, marked by a significant step forward with the Italian Prime Minister’s Decree of 28 October 2025, which authorised the transaction (excluding Iveco Defence, to be sold to Leonardo), but made it conditional on several safeguards. The first requires maintaining existing plants and employment levels for at least two years after the transaction closes. Tata Motors will not be allowed to sell or transfer ownership of strategic technological assets located in Italy. In addition, the Indian company must commit to investing in and retaining research and development activities within the country, and to inform the government of any corporate or production reorganisation plans. The decree specifies that failure to fully or promptly comply with these conditions could result in the revocation of authorisation and government intervention to protect the public interest.
Further details of the deal emerged a few days later, on 5 November, during a parliamentary session dedicated to the sale. The transaction covers nineteen plants and thirty research and development centres employing around 36,000 people, 14,000 of whom are in Italy, and generating annual revenues of approximately seven billion euros. During the session, trade unions voiced concern over job security and the potential risk of industrial dismantling and loss of Italian know-how. The government reiterated that such risks would be prevented by the conditions imposed on Tata and by continuous oversight of their enforcement.
Tata will acquire Iveco for 3.8 billion euros (with an additional 1.7 billion from Leonardo for the Defence division). Iveco’s board of directors unanimously recommended acceptance of Tata’s voluntary public tender offer, considering the deal to be in the company’s long-term interest and conducive to the sustainable success of its business and all stakeholders, including employees, customers and shareholders. Exor, the Agnelli family’s investment firm holding around 27.06% of Iveco Group’s ordinary shares and 43.11% of total voting rights, has signed an irrevocable commitment to support the offer and contribute its shareholding.
Once completed, Iveco will be integrated into the Tata Group, creating an entity with annual sales exceeding 540,000 units and total revenues of about 22 billion euros, geographically distributed across Europe (around 50%), India (around 35%) and the Americas (around 15%), with promising positions in emerging Asian and African markets. For Tata Motors, the acquisition marks its entry into Europe’s truck and bus sector, where Iveco generates nearly three-quarters of its revenues. The Indian manufacturer, which already owns Jaguar Land Rover in the car segment, currently has little presence or manufacturing footprint in Europe’s commercial vehicle industry, and this deal will position it as the world’s fourth-largest truck maker by volume, behind Volvo, Daimler and Traton. Completion of the transaction is expected in the first quarter of 2026, pending approval by the relevant regulatory authorities.
Tata Motors will finance the acquisition through a combination of internal funds and long-term debt, with no new share issuance planned. About one billion euros of the total 3.8 billion will be funded through equity, and the remainder through long-term debt, according to Tata Motors’ Chief Financial Officer, P.B. Balaji. The acquisition of Iveco’s truck manufacturing operations will initially be financed by a short-term bridge loan, to be refinanced within 12 to 18 months through a mix of equity and long-term debt.
