Tata-Iveco combo to form world's 4th largest CV co

New Delhi: Tata Motors and Iveco, an Italian company, have announced a merger that will make the combined entity the world's fourth-largest commercial vehicle manufacturer, with annual revenues reaching Rs 2.28 lakh crore (approximately Euro 21 billion). Tata Motors acquired 89.42% stake in Iveco for roughly 3.43 billion euros, following its initial tender offer settlement. The acquisition marks Tata Motors' largest since its purchase of Jaguar Land Rover in 2008.

Iveco Group employs 33,000 people and operates 16 industrial facilities and 22 research and development centers. The settlement process for the voluntary tender offer, which saw Tata Motors offer EUR 14.4 per share for Iveco's common stock, concluded after the acceptance period ended. This allows shareholders a five-day window from November 2 to November 6 to tender their shares, with settlement of these shares scheduled for November 13.

At a press conference in Turin, Italy, Tata Sons Chairman N Chandrasekaran emphasized the scale of the new entity and the substantial growth opportunities it presents. He stated that volumes, revenues, and profit margins are expected to rise over the next five years. Tata Motors Managing Director and CEO Girish Wagh did not provide a specific timeline for Iveco's delisting from Italy's stock exchanges, but indicated that it will occur soon.

Tata Sons Chairman N Chandrasekaran has assumed the roles of Chairperson and Senior Non-Executive Director of the combined enterprise, while Olof Persson will retain his position as Chief Executive Officer. Additionally, Tata Motors' directors PB Balaji and Girish Wagh have been appointed as non-independent non-executive directors in the new company.