India’s Tata Motors Acquires Iveco for 3.8 Billion Euros

Rome: India’s Tata Motors has reached an agreement to acquire Italian commercial-vehicles-and-buses producer Iveco for 3.8 billion euros, the two companies announced on Wednesday.

According to Ansa News Agency, the deal excludes Iveco’s defence division, which is being sold to Italian defence-and-aerospace giant Leonardo for 1.7 billion euros. This strategic move allows Tata Motors to expand its footprint in the European commercial vehicle market while Leonardo strengthens its position in the defence sector.

The transactions, amounting to a total of 5.5 billion euros, significantly impact Exor, the Elkann family’s holding company, which owns just over 27% of Iveco. As a result, Exor is set to receive 1.5 billion euros, marking a substantial financial gain for the holding company.