Tata Motors has cleared a key hurdle in its proposed €3.91 billion (approximately ₹42,561 crore) acquisition of Italian commercial vehicle manufacturer Iveco Group, securing provisional acceptances for 87.81% of the company’s share capital. The acceptance level exceeds the revised minimum threshold required for the transaction, bringing the takeover closer to completion.
In a regulatory disclosure on October 27, Tata Motors said its wholly owned subsidiary, TML CV Holdings B.V., had received provisional results showing that 238.16 million Iveco shares were tendered by the October 26 deadline.
Including Iveco’s treasury shares, which account for approximately 1.8% of its share capital, the subsidiary’s potential holding stands at 89.42%, net of treasury shares. The results remain provisional and are subject to confirmation.
The development marks a significant step forward for Tata Motors’ international expansion strategy, with the company seeking to strengthen its commercial vehicle presence across Europe and other global markets.
Credits: Malik Times
Tata Motors Raises Iveco Offer To €14.40 Per Share
The latest acceptance results follow Tata Motors’ decision earlier in October to increase its takeover offer by €0.30 per share, raising the price from €14.10 to €14.40.
The company said the revision was intended to account for a delay of approximately four months in the transaction process. It also ruled out any further increase, describing the revised proposal as its final offer.
Based on the provisional results, the tendered shares are valued at approximately €3.43 billion. The overall transaction is valued at €3.91 billion.
The final results are scheduled to be announced by 7:29 am Central European Time on October 29, a day before the scheduled payment date. Payment for shares tendered during the initial acceptance period is expected on October 30, subject to the fulfilment of the remaining conditions.
The provisional acceptance rate also exceeds the revised minimum threshold approved by Iveco shareholders, removing a key obstacle to the transaction’s progress.
Iveco Shareholders Get Another Chance To Tender Shares
Shareholders who did not participate in the initial acceptance period will have another opportunity to sell their holdings to Tata Motors.
Subject to confirmation of the provisional results and fulfilment of the remaining conditions, the offer will reopen for five trading days, from November 2 to November 6. Payments for shares tendered during this additional window are scheduled for November 13.
The reopening follows a resolution adopted at Iveco’s extraordinary general meeting on October 16, which reduced the minimum acceptance threshold from 95% to 80% of the company’s issued and outstanding common share capital on a fully diluted basis, excluding treasury shares.
With provisional acceptances at 87.81%, Tata Motors has crossed the revised threshold. The final announcement will clarify whether all outstanding conditions have been fulfilled or waived.
The additional window gives investors another opportunity to participate in the takeover while allowing the transaction to move towards settlement.
Petrus Advisers Had Opposed The Original Offer
The takeover has faced resistance from Petrus Advisers, an investor holding a 3.8% stake in Iveco. The investor had urged shareholders to seek a higher price, arguing that the original €14.10-per-share offer undervalued the company compared with international commercial vehicle peers.
Petrus Advisers also argued that the proposal did not adequately compensate shareholders for the potential synergies expected from combining the businesses.
Tata Motors managing director and chief executive Girish Wagh maintained that the revised €14.40-per-share offer represented the company’s best and final proposal.
On October 23, Wagh said acceptance stood at 35%, with the company expecting participation to rise as shareholders approached the deadline. The provisional results indicate a substantial increase in tendered shares during the final days of the acceptance period.
Credits: The Economic Times
Takeover To Expand Tata Motors’ Global Commercial Vehicle Business
Tata Motors’ proposed acquisition covers Iveco’s truck and bus businesses but excludes its defence operations, which are being separated from the group.
The deal is intended to expand Tata Motors’ commercial vehicle operations across Europe and other international markets while broadening its product portfolio. Iveco’s established presence in European commercial vehicles would complement Tata Motors’ existing operations and support its ambitions in overseas markets.
The transaction now awaits confirmation of the final acceptance results and completion of the remaining conditions. With the revised minimum threshold met and an additional acceptance window planned for November, the takeover has moved closer to its next milestone.
The October 29 announcement will provide greater clarity on the final acceptance level and the transaction’s path towards settlement, while remaining Iveco shareholders will have a further opportunity to participate in the offer.
