Italy Gives Conditional Approval To Terms Of Iveco's Sale To Tata Motors: Report
Italy's Government has given a conditional approval to the terms of truck maker's sale to Tata Motors Ltd.
Italy has given conditional approval to the terms of sale of Iveco to Tata Motors Ltd., Reuters reported. The news agency has seen the parliamentary documents on this subject.
The decision was made on Oct 31, according to the Reuters report.
Iveco is a truck manufacturing company based out of Turin, Italy. Tata Motors Ltd. agreed to buy Iveco for Euro 3.8 billion in a deal. The truck maker is separately selling its defence business to Italian state-backed defence group Leonardo, as per details on Reuters' reports.
The deal is expected to close in 2026. Once the deal is concluded, Iveco is going to be the largest acquisition till date. Tata Motors will merge Iveco's non-defence business to create the largest commercial-vehicle giant with a combined revenue of euro 22 billion.
In August, Tata Motors raised over Rs 10,000 crore to acquire Iveco. It raised Euro 1 billion through equity in the next 12-18 months as part of its plans to term out the 3.8 billion euros bridge financing facility for acquiring Italian commercial automaker Iveco Group.
Iveco's acquisition will make Tata Motors the fourth largest big truck maker in the world. Before the proposed acquisition, Tata Motors Group was the sixth largest with 1.8 lakh units, and Iveco was 17th with 50,000 units annually.
