Tata Motors to Acquire Iveco in $4.5 Billion Deal, Largest Automotive Buyout Since JLR

Tata Motors Ltd (NSE:TAMO) is set to acquire Italian truck manufacturer Iveco (BIT:IVG) for $4.5 billion from the Agnelli family’s investment firm Exor (AS:EXOR), according to the Economic Times. The deal marks Tata’s largest automotive acquisition since its $2.3 billion purchase of Jaguar Land Rover in 2008 and will be executed through a Dutch entity owned by Tata Motors.

The boards of Tata Motors and Iveco are expected to meet Wednesday to approve the transaction. As part of the agreement, Tata plans to buy Exor’s 27.1% stake in Iveco and launch a tender offer for the remaining shares, excluding Iveco’s defense division. Iveco separately confirmed it is in advanced discussions with multiple parties regarding potential deals for its defense and commercial vehicle businesses.

The acquisition underscores Tata Motors’ aggressive global expansion strategy in the commercial vehicle sector. Iveco, a prominent European truck maker, would significantly strengthen Tata’s international footprint and provide synergies in manufacturing and technology.

Morgan Stanley and Goldman Sachs are advising on the transaction. Once finalized, this deal will rank as Tata Group’s second-biggest acquisition overall, following its landmark Corus Steel buyout.

The move reflects growing consolidation in the global automotive industry as companies seek scale and diversified markets amid rising costs and evolving clean energy regulations.