Industry Odisha Bureau, Oct 10: Tata Motors has lifted its Iveco bid to €14.40 a share amid authorisation delays. The deal could now be worth €3.91 billion. An €85 million credit facility funds the extra payout as deadlines near.
Waiting for approvals has a price, and Tata Motors is now paying it. The Indian commercial vehicle major has raised its takeover offer for Iveco Group NV. Iveco shareholders are now being offered €14.40 per share in cash.
The new terms
The earlier offer stood at €14.10 per share. That marks an increase of €0.30, or roughly 2.1%.
If all 271.2 million common shares are tendered, the deal is worth €3.91 billion. The previous price valued it at €3.82 billion.
The deal remains an all-cash voluntary tender offer. Shareholders exchange their stock for cash rather than Tata Motors shares.
Why Tata is paying more
Tata Motors cited delays in securing prior authorisations. Those approvals are taking longer than first expected, pushing back completion.
In its Friday exchange filing, the company defended its earlier offer. It said €14.10 already reflected a full and fair valuation of Iveco. The increase, it argued, compensates for the slight delay in completing the offer. Nothing in the filing points to a rejection or formal objection.
A deal announced in 2025
Tata Motors unveiled its acquisition plan in 2025. It valued the deal at about €3.8 billion, or nearly ₹38,240 crore.
The purchase runs through TML CV Holdings Pte Ltd. Iveco’s defence business is excluded from the transaction.
Funding the extra payout
Tata Motors will fund the additional payout through an €85 million credit facility. The lender is MUFG Bank Ltd, through its GIFT Branch. The reported valuation rises by roughly €90 million.
Premiums for shareholders
The revised price carries a 33.47% premium over Iveco’s share price on 17 July 2025. That was the last trading day before takeover reports surfaced.
It also stands 6.77% above the price on 29 July 2025. That date marked the final session before the formal announcement.
Deadlines approach
The acceptance period opened on 7 September and closes on 26 October 2026. Iveco shareholders are due to vote at an extraordinary general meeting on 16 October.
Iveco’s board unanimously backed the deal. It urged shareholders to tender and vote for the earlier offer.
No further increase
Tata Motors has also signalled this is its final price. The company said the revised offer will not be increased further. That gives shareholders a clear figure as the deadlines approach.
Execution is the next test
The higher price lifts the potential cost of this cross-border acquisition. Fresh financing is already in place to cover the additional payout. Yet authorisations and the shareholder process still stand between Tata and completion.
