Tata’s Iveco Offer Reaches 35% Acceptance, With Deadline Set for October 26
Key Facts
Shares tendered in Tata Motors’ offer for Iveco ordinary shares reached about 35% as of October 22, Moneycontrol reported, citing Tata managing director and chief executive Girish Wagh in a report published on October 23, 2026. The figure came before the acceptance period ends on October 26, after starting on September 7. Wagh said Tata was confident voluntary acceptance would exceed 80%, the reduced minimum threshold for the offer. He added that the company did not expect a scenario in which acceptance fell below that level. That leaves the final days of the deadline central to the deal’s progress, with a substantial gap remaining between the recorded figure and the required threshold.
The minimum acceptance threshold was 95% when the offer was launched, before Iveco shareholders at an extraordinary meeting approved a resolution that automatically reduced it to 80%. The company announced the meeting’s outcome in October, explaining that the resolution lowered the required proportion of ordinary shares. The change means the offer can meet its minimum acceptance condition at a level below the original threshold. It does not remove the offer’s other conditions, according to Iveco’s announcement. The acceptance period ends on October 26, while October 30 has been set as the settlement date if the offer meets its conditions.
Tata raised the cash consideration on October 9 from €14.10 to €14.40 per share, an increase of €0.30, and Iveco welcomed the change. Moneycontrol estimated the maximum value of the revised offer at about €3.91 billion, or approximately 42,561 crore rupees. The total value remains linked to the number of shares tendered, according to the report, so the figure is not a fixed estimate regardless of participation. The offer covers ordinary shares after the separation of Iveco’s defence business, according to Tata and Iveco’s announcement at its launch. The offer therefore combines a higher price with a lower acceptance threshold, as attention turns to shareholders’ decision before the deadline.
Exor, Iveco’s largest shareholder, gave an irrevocable commitment to support the offer and tender its stake when it was launched on September 4. The commitment covered a stake representing about 27.06% of ordinary shares and 43.19% of voting rights, according to Iveco’s announcement. These figures describe the stake covered by the commitment at the time of the announcement and do not by themselves determine how many shares have currently been tendered in the offer. The two companies said combining their businesses would create a more diversified entity with a global presence. They estimated the combined entity’s annual sales at more than about 590,000 units in the latest offer document issued in September.
The offer valuation drew criticism from Petrus Advisers, which said shareholders should receive an appropriate share of the synergies between the two companies. The group also called for shareholders to be compensated for the fifteen-month period between the deal’s announcement and its expected closing. The objection puts the distribution of expected value into the debate over consideration, following the increase to €14.40 per share. The two companies, in turn, say the combination would enable them to build a broader global presence and annual sales exceeding about 590,000 units. That argument remains part of the stated rationale for the deal as the share acceptance deadline approaches.
The deal comes as Iveco reported a period profit of €38 million in the second quarter of 2026, compared with €79 million in the same period of 2025. Free cash flow from industrial activities also turned negative at €45 million, from a positive €119 million a year earlier. On industrial commitments in Italy, the Ministry of Enterprises and Made in Italy said Iveco’s 2026 investment plan includes more than €76 million for Italian plants. The plan allocates €35 million to Turin, €15 million to Foggia, €14 million to Suzzara and €12 million to Brescia. Iveco will report third-quarter results on November 5, 2026, after the offer’s scheduled settlement date if it meets its conditions.
Wagh said Tata expects to begin consolidating Iveco’s financial results in the following quarter, and that its priority would be to ensure a smooth transition. The statement did not specify a calendar date for that quarter, but linked the start of consolidation to the next stage of the deal. Before then, the share acceptance period ends on October 26, with settlement scheduled for October 30 if the offer conditions are met. Wagh said a large proportion of shares are typically tendered near the end of the acceptance period. He added that this is especially the case during the final 24 to 48 hours, the time remaining before the offer closes when he made his remarks on October 23.