Tata Motors is acquiring a 100% stake in Italy’s commercial vehicle (CV) major Iveco Group. The offer to acquire Iveco will be made by TML CV Holdings PTE LTD or a new limited liability company to be incorporated under Dutch law, which will be wholly owned, directly or indirectly, by Tata Motors.
“The completion of the offer is conditional, inter alia, on the separation of Iveco’s defence business and, as such, the public offer is for all issued common shares of Iveco Group after the separation of that business, at a price of EUR 14.1 (cum dividend, excluding any dividend distributed in relation to the sale of the defence business) per share in cash,” said Tata Motors in an exchange filing.
“The offer represents a total consideration of approximately EUR 3.8 billion for Iveco Group, excluding Iveco’s defence business and the net proceeds from the defence business separation,” it added.
Tata Motors added that the offer would bring together two businesses with highly complementary product portfolios and capabilities and with substantially no overlap in their industrial and geographic footprints, creating a stronger, more diversified entity with a significant global presence and sales of over 5,40,000 units per year.
Together, Iveco and the commercial vehicle business of Tata Motors will have combined revenues of EUR 22bn (INR 2,20,000Cr+) split across Europe (50%), India (35%) and the Americas (15%) with attractive positions in emerging markets in Asia and Africa.
