Tata Motors in Talks to Buy Italy’s Iveco, Agnelli Family Exploring Options

Key Highlights:

• Tata Motors in talks to buy stake in Iveco from Exor.
• Iveco's defence unit is not part of the deal.
• Iveco shares rose nearly 10% after the news.
• Trade unions want the government to discuss the company’s future.
• The Italian government is expected to review any deal under its ‘golden power’ law.

In a major development that could reshape the commercial vehicle landscape, Italy’s Agnelli family is reportedly exploring the sale of truck and bus manufacturer Iveco Group. According to three unnamed sources cited by Reuters, India's Tata Motors has shown interest in buying the company.

Tata Motors Approaches Exor

Two of the sources confirmed that Tata Motors has approached Exor, the investment arm of the Agnelli family, regarding its controlling stake in Iveco Group. Exor currently owns a 27.1% stake in Iveco, with 43.1% voting rights. If the deal goes through, it would mark a major global acquisition move for Tata Motors. Neither Tata Motors nor Exor responded to requests for comments on the report. Iveco also declined to speak on the matter.

Stock Market Reaction and Union Concerns

The news led to a sharp jump in Iveco’s share price on the Milan Stock Exchange, where it grew as much as 9.7% before closing the day 8.3% higher. The Italian trade unions reacted swiftly, requesting Industry Minister Adolfo Urso to step in and address the future of Iveco and its workers. Iveco currently employs around 36,000 people globally, with nearly 14,000 based in Italy.

Defence Business Not Part of Sale

The possible deal would exclude Iveco’s defence division, known as IDV (Iveco Defence Vehicles). Iveco has already been working on separating or selling off this unit and expects to complete the process by the end of 2025. It has received at least three bids for IDV, including a joint offer from Italy’s Leonardo and Germany’s Rheinmetall, as well as bids from KNDS and Czechoslovak Group. Bloomberg reports the IDV business could be valued at up to €1.9 billion.

Strategic Importance and Government Oversight

Given Iveco’s role in Italy’s strategic industrial base, any major transaction involving the company would be reviewed under Rome's 'golden power' law. This gives the Italian government the right to place conditions or block deals involving critical national assets. In 2021, the government used this law to stop a Chinese company, FAW, from buying Iveco.

Iveco, headquartered in Turin, is among the smaller players in the European truck market, which is dominated by Volvo, Daimler, and Traton. Despite its size, it holds strategic value because of its broad portfolio in commercial vehicles, engines, and defence mobility solutions.

Talks Still in Early Stages

Sources indicate that the discussions with Tata Motors are at an early stage and that Exor may be in talks with other potential non-European buyers as well. With the defence business already on track for a spin-off, Exor seems more open to selling its stake in the main Iveco Group.

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CMV360 Says

Tata Motors' looking to buy Iveco is a smart step to grow globally. It can help Tata get better technology and a stronger place in Europe. But the deal may face challenges because Iveco is important for Italy, and the government may step in. If it works out, it could be a big win for Tata.