Daijiworld Media Network - Mumbai
Mumbai, Oct 10: Tata Motors Ltd has increased its takeover offer for Italian commercial vehicle manufacturer Iveco Group NV by 0.30 euro per share to 14.40 euros, citing delays in obtaining the necessary prior authorisations for completing the transaction.
In 2025, Tata Motors announced plans to acquire Iveco, excluding its defence business, for approximately 3.8 billion euros (nearly Rs 38,240 crore) through its subsidiary TML CV Holdings Pte Ltd. The company had initially offered 14.10 euros per share, valuing the transaction at around 3.82 billion euros.
Tata Motors launched an all-cash voluntary tender offer for all outstanding common shares of Iveco in September 2026. The acceptance period runs from September 7 to October 26, 2026, while Iveco shareholders are scheduled to vote on related resolutions at an extraordinary general meeting on October 16.
Iveco Group's board of directors has unanimously supported the proposed acquisition and recommended that shareholders tender their shares and vote in favour of the original offer.
Although Tata Motors maintained that the earlier offer price already represented a full and fair valuation of Iveco, it decided to increase the amount in view of delays in the approval process.
“Nevertheless, the Offeror [Tata Motors] has resolved to increase the price in consideration of the slight delay in the completion of the offer, due to prior authorisations process taking longer than initially,” the company said in an exchange filing on Friday night.
The revised offer price represents a premium of 33.47 per cent over Iveco's share price on July 17, 2025, the last trading day before reports of a potential acquisition by Tata Motors emerged. It also represents a 6.77 per cent premium over the share price on July 29, 2025, the last trading day before the acquisition was officially announced.
If all 271.2 million outstanding Iveco common shares are tendered, the revised offer would value the transaction at approximately 3.91 billion euros.
Tata Motors said the additional payment would be funded through an 85-million-euro credit facility agreement with MUFG Bank Ltd's GIFT Branch.
The company has also made it clear that the revised offer price is final and will not be increased further.
The acquisition is part of Tata Motors' strategy to strengthen its presence in the global commercial vehicle market through the proposed purchase of Iveco's non-defence businesses.