Tata Motors shares slip 4% on talks to acquire $4.5 billion stake in Iveco
















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On Wednesday, the Tata Motors shares fell around 3.9 percent, touching a day’s low price of Rs 665.25 on NSE after the multiple sources cited that they are moving to make one of the largest automotive acquisitions to date by securing a deal to acquire the Italian truck maker Iveco from the Agnelli family’s investment firm, Exor, in a transaction valued at $4.5 billion. If this deal goes through, it will be a landmark move surpassing Tata Motors' $2.3 billion acquisition of Jaguar Land Rover (JLR) in 2008, underlining the company's robust appetite for international expansion and transformative industry plays.
According to multiple reliable news reports and as highlighted by CNBC TV18, Tata Motors is expected to acquire a 27 percent stake in Iveco. The deal’s mechanics are focused on commercial truck businesses. Despite reports of advanced negotiations and the boards of both Tata Motors and Iveco meeting to approve the transaction, a formal announcement from Tata Motors is still awaited on this matter at the time of this writing.
This acquisition, if confirmed, would mark a pivotal point for Tata Motors, adding a leading European commercial vehicle brand to its expansive portfolio. With commercial trucks, it will have a strategic significance in the European mobility landscape. For Tata Motors, such a deal is poised to elevate its presence in the European commercial vehicle market and aligns with broader aspirations for global industry leadership.
Looking back, Tata Motors' international ambitions were vividly demonstrated in 2008 with the high-profile $2.3 billion acquisition of Jaguar Land Rover (JLR) from Ford. The JLR deal not only gave Tata exposure to luxury car segments and advanced automotive technologies but also granted the group instant global credibility and diversified its revenue base beyond the Indian market. Recently, JLR has become a profit engine for Tata, delivering several consecutive profitable quarters and supporting Tata’s strategic repositioning as a global automaker.
For FY25, Tata Motors reported consolidated revenues of Rs 4,39,695 crore and a net profit of Rs 28,149 crore. The company achieved a significant milestone by turning net cash positive with an auto net cash position of Rs 1,018 crore, reflecting improved operational efficiency and resilience across global markets. While EBITDA margins saw a marginal decline, the company’s primary businesses, including the JLR brand and the domestic commercial vehicle segment, contributed robustly to profitability. Notably, JLR alone accounted for 71 percent of Tata Motors, while the CV segment reported its highest-ever profit before tax and sustained double-digit EBITDA margins. The Q1FY26 results are expected to be released on August 8, 2025, as per the recent filing on the exchanges.
Management’s outlook for the future is marked by cautious optimism and a clear focus on sustainable, value-creating growth. Chairman N. Chandrasekaran and other senior leaders have reiterated Tata Motors’ preparedness to navigate industry challenges, highlighting structural reforms, technological investments, and a resilient business model. The company sees the demerger of its commercial and passenger vehicle businesses as a critical move for sharper strategic focus and unlocking shareholder value. Looking ahead, Tata plans significant capital allocation for both passenger and electric vehicle businesses, aggressive new product launches, expanded market reach, and a continued focus toward operational excellence.
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