Acceptance of Tata’s Iveco Bid Reaches 35% Ahead of Oct. 26 Deadline
Key Facts
Shareholder acceptance of Tata Motors’ offer to buy ordinary shares in Iveco reached 35%, Moneycontrol reported on Oct. 23, 2026, citing Tata Managing Director and CEO Girish Wagh. Wagh said he expected voluntary take-up to exceed 80% before the offer period ends on Oct. 26. The statement came in the final days of a period that began on Sept. 7, with the gap between recorded acceptance and the required threshold a key factor in the deal’s outcome. Iveco shareholders had lowered the minimum acceptance threshold from 95% to 80% at an extraordinary meeting on Oct. 16. If the offer meets its closing conditions, settlement is scheduled for Oct. 30.
Tata held to its revised cash price of €14.40 per share, after raising it on Oct. 9 from €14.10, an increase of €0.30 per share. Iveco welcomed the increase, which followed objections to the offer’s value. According to Business Standard, the total value could reach €3.91 billion if all 271.2 million ordinary shares are tendered. That is a maximum value conditional on all shares being tendered, and the offer excludes Iveco’s defense business. Therefore, €3.91 billion does not represent a fixed deal value regardless of the number of shares tendered.
The original price when the agreement was announced on July 30, 2025, was €14.1 in cash per share, with total consideration estimated at about €3.8 billion. The agreement targeted Iveco shares after the separation of its defense business, which is also excluded from the current offer. Comparing the two prices shows that Tata raised the cash consideration per share after the offer began, while the total value remains tied to the number of shares their owners agree to tender. Iveco said Exor, its largest shareholder, had irrevocably undertaken to support the offer and tender its stake of about 27.06% of ordinary shares. That stake represents 43.19% of voting rights, according to the offer announcement data on Sept. 4, 2026.
The price revision did not end investor objections to the valuation. Petrus Advisers, which together with funds it advises held about 3.8% of Iveco shares on Sept. 29, said the price of €14.10 per share did not reflect the company’s fair value. It argued that shareholders were not receiving an appropriate share of the expected synergies between the two companies. It also objected to the lack of compensation for shareholders during an expected 15-month completion period. The price criticized by Petrus was the offer price before it was raised in October, while the revised consideration is €14.40 per share. These objections put investors’ decision on the offer against the acceptance deadline of Oct. 26.
Iveco and Tata say combining their businesses will establish a more diversified entity with a global presence and annual sales exceeding 590,000 units. The companies’ case rests on the complementarity of their products, industrial capabilities and geographic reach, which they say will enable greater scale and improve operating efficiency. The deal comes as Tata seeks to expand its commercial vehicle business through the acquisition of Iveco, excluding the defense segment. In the second quarter of 2026, Iveco reported a period profit of €38 million, compared with €79 million in the corresponding period of 2025. Free cash flow from industrial activities also turned negative at €45 million, after recording €119 million a year earlier, according to the company’s results.
After the acceptance period ends on Oct. 26, settlement is expected on Oct. 30, subject to the offer’s success and satisfaction of its closing conditions. Iveco set Nov. 5, 2026, as the date for publishing its third-quarter results, after the scheduled acceptance-period close and settlement dates. These milestones follow the lowering of the acceptance threshold and the price increase, while recorded take-up remains at 35%, according to Wagh’s statement reported on Oct. 23. Tata’s CEO said the company expected voluntary acceptance to exceed 80% before the offer closed. The final offer results will determine whether that threshold was met, ahead of the company’s quarterly results in November.