Tata Motors has successfully cleared the critical acceptance threshold required to complete its €3.91 billion (Rs 42,561 crore) acquisition of the Italian commercial vehicle manufacturer Iveco. Following the close of the tender period on Monday, the offer secured total acceptances representing 87.8% of Iveco’s shares. This figure comfortably surpassed the 80% requirement necessary for the takeover bid to become effective, marking a significant milestone in the company’s international expansion strategy.
This deal stands as the largest acquisition conducted under the leadership of Tata Group chairman N Chandrasekaran. In addition to the shares acquired through the tender process, Tata Motors will also secure Iveco’s 1.8% treasury stock. Although these treasury shares do not carry voting rights and were excluded from the official acceptance threshold calculation due to Dutch legal requirements—which govern the Netherlands-incorporated Iveco—their inclusion increases the total economic interest held by Tata Motors to 89.6%.
The path to this majority stake saw significant momentum in the final stages of the tender period. As of October 22, acceptances had only reached 35%. However, the offer, which initially opened on September 4, saw increased interest following a strategic adjustment on October 9. Tata Motors sweetened the deal by raising its bid from €14.10 per share to €14.40 per share, effectively increasing the total transaction value from the initial €3.8 billion announced on July 30, 2025.
The successful outcome was supported by a pivotal decision made by Iveco shareholders during an extraordinary general meeting held on October 16. The approval of a “back-end” resolution served to lower the necessary threshold for a statutory squeeze-out of minority shareholders from the traditional 95% to 80%. This mechanism allows Tata Motors to merge Iveco with its acquisition vehicle or transfer assets to achieve the same result as a standard squeeze-out, a development widely interpreted by market analysts as a signal of strong institutional support for the merger.
With the 80% threshold now safely cleared, the process is expected to move quickly toward taking Iveco private. Minority shareholders who opted not to tender their holdings during the formal process will not retain their interest in a listed entity. Instead, they will be required to accept the same €14.40-per-share cash consideration that was offered to all other participants during the tender window. Company officials expect the final delisting from Euronext Milan to be completed within one to two months.
The acquisition of Iveco is expected to bolster Tata Motors’ global footprint in the commercial vehicle sector. By consolidating control, the Indian conglomerate gains full ownership of the Italian firm’s operations and assets. As the transaction moves into its final integration phase, industry experts are closely watching how this high-value acquisition will influence Tata Motors’ position within the competitive European transport and automotive market. The shift to private ownership marks the final procedural step in what has been a high-profile pursuit by the Indian multinational.
Comments