Tata Motors (TML) has offered to acquire 100% of Iveco Group N.V.
- Iveco officially came into existence on January 1, 2022, after splitting from CNH Industrial. Although it is incorporated as a Dutch company with its legal seat in Amsterdam, its core operations are based in Turin, Italy, where its headquarters are situated.
- Iveco Group’s shares began trading on Euronext Milan on 3 January 2022.
- The Group is into trucks, defence vehicles, buses, powertrains and financial services to its dealers and customers.
- TML’s deal is excluding the defence business
- The offer aims 100% common shares of the Iveco Group following the separation of it’s defense division; a pre-condition.
- The offer is subject to a minimum acceptance level of 80% of the shares tendered. If 80% is accepted, balance 20% will come through assured offer of sale from an existing large shareholder.
- The deal value is of 3.8 bn euros (around $4.3 bn)
- Iveco’s turnover for last 3 years including the defence business
- CY24 – €15.2 Bn
- CY23 – €15.9B Bn
- CY22 – €14.3B Bn
Iveco’s main attraction to TML is mentioned as it’s extensive global reach in 30 countries across Europe, Africa and Americas.
It’s a very large acquisition that may take many years to stabilise.