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Tata Motors Shares Fall Over 4% Amid Talks to Acquire Iveco’s Truck Division for $4.5 Billion
Tata Motors stock drops 4% as it enters advanced talks to acquire Italy’s Iveco truck business in a potential $4.5 billion deal.
Shares of Tata Motors came under sharp pressure on July 30, falling over 4 percent intraday after media reports suggested that the Indian auto giant is in advanced talks to acquire the truck division of Italy’s Iveco Group in a deal reportedly valued at $4.5 billion.
According to a report by CNBC-TV18, discussions are focused on the acquisition of Iveco’s commercial and defence truck business. The Italian company, owned by the Agnelli family, has confirmed it is evaluating a sale of its industrial vehicle unit, though a final decision is still pending. If approved, the deal could be greenlit by both boards as early as today.
If concluded, the transaction would become the Tata Group’s second-largest international acquisition, trailing only the $12 billion Corus deal in 2007, and would mark Tata Motors’ biggest acquisition since its $2.3 billion purchase of Jaguar Land Rover in 2008.
Iveco's truck division is a major revenue driver for the company, accounting for 70% of its industrial revenue. The remaining 30% comes from the bus and powertrain segments. In 2024, Iveco held a 13.3% market share in the light commercial vehicle (LCV) segment, and 8–9% in the medium and heavy commercial vehicle space.
The development assumes added importance as Tata Motors is preparing to demerge its commercial vehicle (CV) business into a separate listed entity by December 2025. In FY24, the CV unit generated ₹75,000 crore in revenue, with a 49% market share in heavy commercial vehicles and 30% in LCVs. The segment reported an EBITDA of ₹8,800 crore, free cash flow of ₹7,400 crore, and is expected to be net cash positive at the time of the demerger.
As of 9:45 AM, shares of Tata Motors were trading at ₹670, down 3.3% on the NSE. The stock has now declined 10% year-to-date, underperforming the broader market.
This potential mega-deal is being closely watched by analysts and investors, as it could significantly expand Tata Motors’ global footprint in the commercial vehicle space while aligning with its demerger and restructuring strategy.
