Italy has granted conditional approval for Tata Motors of India to acquire the Iveco Group, a mobility developer, in a deal valued at 3.8 billion euros (approximately $4.3 billion). This decision comes following Tata’s agreement to purchase Iveco’s commercial vehicle operations, while the company’s defense segment will be sold separately to the state-backed firm Leonardo SpA.
Iveco, based in Turin, is controlled by the Agnelli family through their investment firm Exor, which holds a significant 27.1 percent stake and possesses 43.1 percent of the voting rights. As part of the acquisition, Exor plans to transfer its stake in Iveco to Tata.
During the announcement of their acquisition strategy earlier this year, Tata and Iveco emphasized that the merger would unite two companies with highly complementary product offerings and capabilities, noting that there is almost no overlap in their industrial and geographical operations.
Upon finalization of the deal, the combined entity is projected to sell over 540,000 vehicles annually and achieve revenues around 22 billion euros (approximately $25.4 billion), positioning itself as a major player in the global commercial vehicle market.
Iveco employs around 36,000 workers across the globe, with about 14,000 based in Italy, generating nearly three-quarters of its revenue from the European market.
In terms of military capabilities, both Iveco, Tata, and Leonardo manufacture military vehicles that embody protection, mobility, and operational flexibility, essential in today’s mechanized warfare. Iveco’s offerings include the Light Multirole Vehicle and the SuperAV wheeled armored vehicle, as well as the Trakker and Eurocargo tactical trucks.
On the other hand, Tata, headquartered in Mumbai, is known for its production of vehicles like the Light Armored Multirole Vehicle and Defense Logistics Vehicle, which are extensively utilized by the Indian Army for various tactical roles, including transport and artillery support.
Rome-based Leonardo contributes to the military vehicle sector by offering advanced systems such as the Freccia Infantry Fighting Vehicle and the Centauro wheeled tank destroyer, emphasizing high-tech armored reconnaissance and integrated battlefield solutions.
