Tata Motors gets EU nod, acquire Iveco from Italy Agnelli family
By Anjali Sharma
WASHINGTON – The European Commission on Tuesday has given TML Commercial Vehicles, the commercial vehicles arm of Tata Motors, the regulatory green light to acquire Italian truck and bus maker Iveco Group, according to a statement issued by the company.
The deal remains dependent upon Iveco divesting its defence division—manufacturer of armoured vehicles—to fellow Italian group Leonardo for €1.7 billion, which is expected to happen.
Turin-headquartered Iveco is in the process of spinning off its defence business, which is not included in the proposed acquisition by Tata Motors.
The company had stated that its board is reviewing all aspects of potential transactions.
The EU regulatory nod came amidst indications that Tata Motors would acquire Iveco from its principal shareholder, Italy’s Agnelli family, for around USD 4.5 billion. If finalised, the deal would mark the Tata Group’s second-largest acquisition after Corus and the biggest ever for Tata Motors, it stated.
According to the statement, the EU regulator stated that it had concluded that the acquisition deal “would not raise competition concerns, given the limited combined market share that would result from this merger.”
Iveco is listed on the Milan Stock Exchange. Morgan Stanley is advising Tata Motors, while Goldman Sachs is assisting the Agnelli family and Iveco.
Clifford Chance is the legal advisor on the transaction. Tata Motors is expected to route the acquisition through a fully-owned Dutch entity.
It may be recalled that in July 2025, Tata Motors had announced that it had reached an agreement to acquire Iveco in a transaction valued at €3.8 billion (USD 4.5 billion).
The merged group would post combined revenues of around €22 billion, divided between Europe (50%), India (35%) and the Americas (15%).
The geographical distribution reflects the industrial rationale behind the merger, which is leveraging Iveco’s strong commercial position in the European market and Tata’s scale in India.
Tata Motors Chairman Natarajan Chandrasekaran had stated in July 2025 that “This is a logical step following the demerger of Tata Motors’ Commercial Vehicles business. It will allow the combined group to be competitive on a global scale, with two strategic home markets, India and Europe”.
