Industry Odisha Bureau, Sep 05: Tata Motors has cleared regulatory hurdles for its Iveco takeover. Financing has also been secured for the €3.82-billion transaction. Shareholders now represent the decisive remaining hurdle for completion. Exor has committed its 27.06% stake to Tata’s offer. The €14.10-a-share tender opens September 7 formally.
Exor, Iveco’s largest shareholder, has locked in its commitment. It has agreed to back all transaction-related resolutions too. This leaves 72.94% of Iveco shares in public hands. The tender offer itself opens September 7 as scheduled.
Reaching 80% acceptance requires significantly more shareholder support. Tata needs another 52.94 percentage points beyond Exor’s stake. This means winning roughly three-fourths of remaining public shares. The 80% threshold does not activate automatically without further steps.
The tender initially requires 95% acceptance to proceed smoothly. That level would let Tata execute a Dutch squeeze-out. However, an Extraordinary General Meeting on October 16 could change this. Shareholders will vote on so-called “Back-End Resolutions” there.
If approved, Tata’s minimum threshold falls from 95% to 80%. Clearing 80% then unlocks a pre-agreed Asset Sale framework. This would let Tata secure full operational ownership regardless. Iveco could then delist from Euronext Milan entirely.
Regulatory clearance has already been secured across multiple fronts. CONSOB approved the offer document on September 3. The European Central Bank granted sector authorisation on September 1. Competition, foreign investment and foreign subsidy approvals are now complete.
Iveco’s board has unanimously recommended the offer to shareholders. Goldman Sachs confirmed the €14.10 price is financially fair. Rothschild & Co, advising independent directors, reached the same conclusion. This board-level support strengthens Tata’s position heading into the tender.
Combined, Tata and Iveco would sell over 590,000 vehicles annually. Their combined revenue would reach roughly €21 billion. Europe would contribute 46% of that revenue, India 32%. Iveco employs about 33,000 people across 16 industrial sites.
The company also operates 22 R&D centres across multiple regions. Tata has committed to preserving Iveco’s Turin headquarters for two years. It will maintain capex plans and avoid combination-linked plant closures. Financing of up to €3.825 billion comes via Morgan Stanley and MUFG.
The main tender closes October 26, with payment October 30. A secondary window follows from November 2 to November 6. Settlement is scheduled for November 13 under current plans. Ultimately, Iveco’s public shareholders will determine whether Tata reaches its 80% ownership target.
