JLR owner Tata Motors will acquire Italian truck manufacturer Iveco Group in a £3.3 billion deal.
Prior to the agreement, Iveco Group sold its defence division to Italian defence group Leonardo for £1.5bn.
The deal with Tata Motors aims to combine product lines, geographic footprints and industrial strengths between both companies, with the intention to form a global commercial vehicle company with £19bn revenue and a focus on creating zero-emissions vans and trucks.
It will be funded by secured financing from Tata Motors and is expected to close in the first half of 2026, subject to regulatory approvals.
The new group will operate across Europe, India and the Americas, with plans to increase its position in emerging markets across Asia and Africa.
Operations, headquarters and employment bases will remain in place, with no immediate restructuring planned.
Both companies will retain their brands and leadership, with Iveco continuing to be headquartered in Turin.
Natarajan Chandrasekaran, chairman of Tata Motors, said: “This is a logical next step following the demerger of the Tata Motors Commercial Vehicle business and will allow the combined group to compete on a truly global basis with two strategic home markets in India and Europe.
“The combined group’s complementary businesses and greater reach will enhance our ability to invest boldly.”
Tata split out its commercial vehicle operation from its passenger car and JLR operations in March 2024.
Olof Persson, Iveco Group chief executive, said: “By joining forces with Tata Motors, we are unlocking new potential to further enhance our industrial capabilities, accelerate innovation in zero-emission transport and expand our reach in key global markets.”
