M&A

M&A

Tata Motors to acquire Italian truck maker Iveco from Agnelli family for $4.5 B

Economic Times  

Tata Motors is set to buy Italian truck maker Iveco from its principal shareholder, the Agnelli family, for USD 4.5 Billion, making it the Tata Group’s second-largest acquisition after Corus and the largest ever for the automobile major. In 2008, Tata Motors bought Jaguar Land Rover (JLR) for USD 2.3 Billion.Tata Motors would buy 27.1% from Exor, the investment company of the Agnelli family, and launch a tender offer (similar to India’s open offer mechanism) to buy out the other smaller shareholder groups. Exor also controls 43.1% of the voting rights of the truck maker.Tata Motors plans to route this transaction through a Dutch entity, which will be fully owned by Tata Motors. Reuters was the first to report about Tata-Iveco talks for a possible deal on July 18.Iveco is demerging its defence business, which will not be a part of the Tata Motors transaction.Morgan Stanley is advising Tata Motors, while Goldman Sachs is working with Agnellis and Iveco. Clifford Chance is the legal advisor to the deal.