Tata Takes 89.42% Stake in Iveco, Reopens Offer to Shareholders in November
Key Facts
Tata Motors and Iveco announced on October 30, 2026, that they had completed the initial settlement of the takeover offer, making Iveco part of Tata Motors, according to a statement from the companies. The offer company holds 238,157,212 ordinary shares, representing approximately 89.42% of Iveco’s ordinary share capital after treasury shares are excluded. The offer was executed through a wholly owned subsidiary for €14.4 in cash per share, including distributions. The stake gives Tata control of a group operating in commercial vehicles, while an additional window remains available to minority shareholders in November. Iveco said the offer acceptance period will be reopened for 5 trading days, from November 2 to 6. Shares tendered during that period will be settled on November 13, according to the schedule announced by the company.
Tata is seeking through the offer to expand its presence in the commercial vehicle sector through Iveco Group, whose businesses include trucks, buses, powertrains and vehicle financing. Iveco employs about 33,000 people and operates 16 industrial sites and 22 research and development centers, according to Business Standard. This industrial and research network provides a broad operating base now under Tata’s control following the initial settlement. The offer was announced in July 2025 at an initial cash price of €14.1 per share, with a total value of about €3.8 billion after the defense business was separated. On October 9, 2026, Tata raised the price to €14.40 per share, according to previous EL7 coverage. The price at which the current settlement was executed is €14.4 per share, as stated in Iveco’s announcement.
The deal comes as Iveco faces operational pressure linked to a downturn in its main European markets. The company said in its annual results that 2025 was a “difficult year” for the sector, with declines in the European market for light commercial vehicles and heavy trucks. It added that the delayed ramp-up of bus production at its Annonay plant in France weighed on activity volumes, profitability and annual free cash flow. Consolidated revenue from continuing operations was €13.4 billion in 2025, down 7% from the previous year, while the adjusted operating profit margin was 4.8%. The revenue excludes the defense business, according to Iveco. These figures provide financial context for the transfer of control, with challenges in the European market remaining among the factors facing the company.
On governance, N. Chandrasekaran became non-executive chairman of Iveco’s board, with the titles of chairman and senior non-executive director. Olof Persson remained chief executive, according to Iveco’s statement. The company also repurchased all outstanding special voting shares for no consideration, leaving no shares of this type outstanding. Iveco acted under the authorization granted by its extraordinary general meeting on October 16, 2026. The purchase of minority shares is continuing in parallel, while Tata said details of the post-offer procedures would be announced later. Options may include a voluntary buyout, a squeeze-out under Dutch law, or the company’s demerger and liquidation after the offer, according to Business Standard.
Attention now turns to Iveco’s third-quarter 2026 results, which the company brought forward to November 3 from November 5. The announcement comes before the offer acceptance period reopens on November 2, placing the results release and the start of the additional period in the same week. The share acceptance window closes on November 6, with shares tendered during it to be settled on November 13. After the additional period ends, details of the remaining steps to purchase minority shares are expected to be announced, Tata said. These dates will shape the near-term path to completing the offer, while the third-quarter results keep Iveco’s operating performance in focus.