Tata Motors Raises Iveco Offer to €14.40, Calls It Best and Final

Tata Motors Ltd has raised its tender offer for Italian truck and bus maker Iveco Group N.V. to €14.40 per share from €14.10, describing the revised price as its “best and final offer”. The increase, announced on October 9 through its indirect wholly owned subsidiary TML CV Holdings B.V., comes as the takeover has taken longer than expected because of pending regulatory approvals in some jurisdictions.

The offer covers about 271.2 million Iveco common shares. If all of them are tendered, the maximum payout goes up by €81.36 million, or about ₹724 crore, to roughly €3.91 billion, which is around ₹34,778 crore, according to the company’s exchange filings.

Funding and premium

To fund the additional amount, TML CV Holdings has arranged a credit facility of €85 million, or about ₹757 crore, from MUFG Bank’s GIFT City branch. The company said the revised price is cum dividend, other terms of the offer remain unchanged, and shareholders who have already tendered their shares do not need to submit fresh acceptance forms.

At €14.40, the offer represents a premium of 33.47% to Iveco’s official share price on July 17, 2025, the last trading day before reports of a possible acquisition surfaced. It is also 26.87% to 67.98% higher than the volume-weighted average prices over the one, three, six and 12 months before that date, and 6.77% above the official price on July 29, 2025.

Background to the deal

Tata Motors agreed in 2025 to acquire Iveco’s commercial vehicle business in a deal valued at about €3.8 billion, excluding Iveco’s defence unit, which is being sold separately. The transaction is the company’s largest overseas acquisition since it bought Jaguar Land Rover in 2008, and would give it a significant presence in the European truck and bus market.

Following the demerger of its passenger vehicle business, the listed Tata Motors Ltd houses the group’s commercial vehicles operations, making Iveco a central part of its international expansion plans.

The tender offer opened in early September. As of Friday, about 28.4% of the Iveco shares targeted under the offer had been tendered, according to Borsa Italiana data. Iveco said in a separate statement that it welcomed the higher price, and its shares closed at €14.40 on Friday, in line with the revised offer.

Market reaction

Shares of Tata Motors closed at ₹279.90 on October 9, up 2.53% from the previous session. The revised bid was announced after Indian market hours, and the stock’s response is expected when trading resumes on Monday.

By declaring the price final, Tata Motors has signalled that Iveco shareholders who have been holding out for a better deal will not get a further increase, which could encourage more acceptances before the window closes.

What comes next

The offer period is scheduled to end on October 26. Investors will track the level of acceptances in the coming two weeks and the progress on outstanding regulatory clearances, which will determine the timing of the deal’s completion and its integration into Tata Motors’ commercial vehicle business.