Turin, Italy – July 30, 2025
Iveco Group NV, the Italian commercial vehicle manufacturer, is set to undergo a major breakup with the sale of its commercial vehicle and defense divisions to two separate buyers in a deal valued at approximately €5.5 billion ($6.3 billion).
🚛 Sale of Commercial Vehicle Business to Tata Motors
India’s Tata Motors Ltd will acquire Iveco’s commercial vehicle operations—including trucks, buses, and industrial engines—for around €3.8 billion. This acquisition will be made through Tata Motors’ subsidiary or a newly formed Dutch entity. Tata plans to launch a voluntary tender offer to purchase all outstanding common shares of Iveco Group at a cash price per share, contingent on the successful separation of Iveco’s defense business.
🛡️ Defense Unit to Leonardo
Iveco’s defense and civil protection division will be sold to Leonardo Group, Italy’s state-controlled defense contractor, for approximately €1.7 billion, including debt. This sale aligns with Italy’s strategic priority of maintaining domestic control over critical defense assets. The transaction is expected to close by March 31, 2026, subject to regulatory approvals.
🇮🇹 Government Backing and Strategic Impact
The Italian government has expressed support for the breakup, emphasizing the importance of retaining the defense unit within national control. Prime Minister Giorgia Meloni’s administration is backing the deal, conditioned on the defense unit’s sale to Leonardo.
This strategic separation allows Tata Motors to strengthen its position in the global commercial vehicle market, while Leonardo enhances its footprint in the European defense industry. Post-acquisition, Tata’s commercial vehicle business will be a significant player with annual sales exceeding 540,000 units and revenues of roughly €22 billion.
🗓 Timeline and Approvals
Iveco’s board has unanimously approved the proposed transactions. The deal is expected to close in the second quarter of 2026, pending necessary regulatory approvals.
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