Tata Motors Stands Firm on €14.40 Offer for Iveco Group
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Tata Motors will not raise its €14.40 per share buyout offer for Italian commercial vehicle manufacturer Iveco Group before the tender offer closes on October 26. The revised bid values the transaction at up to €3.91 billion, or approximately ₹41,591 crore.
Speaking after the company reported September quarter financial results on October 23, Tata Motors managing director and chief executive officer Girish Wagh reaffirmed that the price represents the final terms.
“The best and final offer is absolutely the best and final offer and it will remain at €14.4 per share.”
Valuation Pushback from Minority Investors
Activistic resistance surfaced ahead of the deadline. Petrus Advisers, an investment firm holding a 3.8 per cent stake in Iveco, pushed shareholders to reject the terms.
The investor presented figures on September 29 arguing that Tata Motors’ initial €14.10 per share bid priced Iveco at roughly two times its estimated 2028 earnings before interest and tax. Global competitors such as Volvo, Daimler Truck, Traton and Paccar trade at an average multiple near seven times EBIT. Petrus Advisers argued that existing shareholders should capture higher synergies from the combination alongside extra payment for procedural delays.
Tata Motors countered by raising the cash offer on October 9 by €0.30 per share, equivalent to about ₹31.91 at prevailing foreign exchange rates. Wagh described the increase as a goodwill gesture following a four-month transaction delay.
“The best and final offer is absolutely the best and final offer and it will remain at €14.4 per share.”
Global Scale for Commercial Vehicles
Buying Iveco gives Tata Motors an industrial manufacturing footprint across continental Europe. The arrangement carves out Iveco’s defence vehicle division, combining purely commercial truck and bus operations across global markets.
Indian commercial vehicle builders face cyclical domestic demand alongside strict capital requirements for alternative-fuel powertrains. Securing Iveco brings engineering centers, established European fleet customer networks and heavy-duty truck platforms that would require years to develop organically. European commercial vehicle operators maintain strict procurement ties, making cross-border acquisitions the fastest route to scale.
Integration execution carries clear operational risks. Heavy truck operations face slowing European freight demand, high energy costs and capital spending requirements for battery and hydrogen propulsion systems. Merging procurement channels and factory tooling will determine whether the expected cost savings materialize.
Approvals and Final Tender Count
Iveco shareholders cleared all procedural resolutions during an extraordinary general meeting on October 16. That vote cleared the board-level pathway for the takeover to proceed under local market regulations.
Acceptance tallies stood at 35 per cent of eligible shares entering the final weekend of the tender. Tata Motors executives expect total tendering to exceed the 80 per cent threshold before the acceptance window shuts on October 26, noting that institutional holdings typically tender within the final 48 hours.
Financial settlement is set for October 30 if the transaction crosses the ownership threshold, with operational consolidation scheduled to start in the following quarter.
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