KATHMANDU: Tata Motors is close to buying Italian truck manufacturer Iveco in a deal valued at $4.5 billion. This would be the biggest acquisition for Tata Motors since it bought Jaguar Land Rover in 2008 for $2.3 billion as per ET.
According to reports, Tata will acquire Iveco from the Agnelli family, which owns the investment firm Exor. Exor currently holds a 27.1% stake in Iveco, along with 43.1% of the voting rights.
Both Tata Motors and Iveco are said to have scheduled board meetings to approve the transaction. The Agnelli family, which has a long-standing business relationship with the Tata Group, is supportive of the deal. This connection dates back to the joint venture between Tata and Fiat Motors in India.
Exor, the Agnelli family’s investment arm, also holds stakes in global companies such as Ferrari and Stellantis, which owns the Fiat brand.
The acquisition will be carried out through a Dutch subsidiary fully owned by Tata Motors. Iveco earns most of its revenue around 74%, from Europe but also has business in North and Latin America.
Tata Motors is a key player in the global commercial vehicle market, especially in the trucking segment.
In 2004, the company acquired South Korea’s Daewoo Commercial Vehicle Company, now known as Tata Daewoo. Although based in South Korea, Tata Daewoo has built a strong international presence. Its trucks, sold under the “Daewoo Trucks” brand, are popular in markets across South Korea, Eastern Europe, Southeast Asia and Africa.
This earlier acquisition helped Tata Motors expand its global reach, something the proposed Iveco deal is also expected to strengthen. With this move, Tata Motors aims to boost its global presence in the commercial vehicle segment and gain access to new technologies.
In Nepal, Tata Motors holds a leading position in the commercial vehicle segment, with a strong distribution network and wide customer base.
