Big news for Tata Motors— A recent report in the Economic Times indicates that Tata Motors could be nearing a deal to acquire Iveco, the Italian truck manufacturer, for $4.5 billion. The stake buy is from the company’s principal shareholder, the Agnelli family.
If the deal actually comes through, this would be the Tata Group’s second biggest acquisition after Corus. For Tata Motors, this will be the largest since they bought Jaguar Land Rover in 2008 for $2.3 billion. The Tata Motors share price will be in focus.
The Economic Times report indicates that a formal announcement is likely later today. However, for now, this is a completely source-based news report as per the Economic Times.
Iveco looking to sell truck unit
In an earlier report on Reuters indicated that Italy’s Agnelli family is in talks over the possible sale of truck maker Iveco and Tata Motors is the potential buyer. As per that report, Tata Motors approached Exor, the Agnellis’ investment company, over its controlling stake in Iveco Group. However, the Reuters report outlined that the sale may not include Iveco’s defence business.
However, we need to wait for the official announcement for greater clarity on the final contours of the deal and the exact deal amount. As per reports, the boards of both companies are currently meeting to discuss the acquisition and its various facets.