Tata Motors Shares Fall Over 4% Amid Reports of $4.5 Billion Iveco Acquisition Talks

Mumbai: Tata Motors shares came under pressure on Wednesday, dropping by over 4% in early trading, following reports that the company is in advanced talks to acquire the truck division of Italy’s Iveco Group in a potential $4.5 billion deal.

As of 11:23 A.M., Tata Motors’ stock had declined 3.08% to Rs 671.85, reflecting investor concerns over the scale and implications of what could become the Tata Group’s second-largest overseas acquisition—after the $12.9 billion Corus Steel deal in 2007.

The discussions with Iveco, owned by Italy’s Agnelli family, reportedly focus on acquiring the company’s defence and commercial truck divisions.

While Iveco has acknowledged exploring a potential sale of its industrial vehicle unit, no formal agreement has been finalized. However, sources suggest the deal could receive board-level approval as early as today.

If completed, this would mark Tata Motors’ biggest acquisition since its $2.3 billion purchase of Jaguar Land Rover in 2008, significantly expanding its global commercial vehicle footprint.

The timing is strategic, as Tata Motors is currently in the process of demerging its commercial vehicle business into a separate entity, a move expected to be completed by December 2025.

In India, Tata Motors holds a 30% share in the light commercial vehicle (LCV) market and a 49% share in the heavy commercial vehicle (HCV) segment. The division generated Rs 75,000 crore in revenue during the last fiscal year.

Iveco’s truck division forms the core of its industrial operations, accounting for 70% of its industrial revenue. The remaining 30% comes equally from its bus and powertrain businesses.

In 2024, Iveco held an 8–9% market share in the medium and heavy truck segment and a 13.3% share in the European LCV market.

With inputs from IANS