Iveco, under the Wing of Tata Motors: Billion-Dollar Transaction Approved Conditionally by the Italian Government

TURIN/MUMBAI, 12 November 2025 — One of the most important deals in the commercial vehicle industry has been given the green light, but not without strict conditions. The Italian government has conditionally approved the sale of domestic commercial vehicle manufacturer Iveco Group to Indian giant Tata Motors, in a transaction valued at 3.8 billion euros. The decision, adopted at the end of October 2025 under the umbrella of the "Golden Power" mechanism, underlines Rome's desire to protect national strategic interests, in particular those related to security and the automotive industry.

A Global Vision Acquisition

The takeover of Iveco by Tata Motors, officially announced in July 2025, aims to create a new global leader in the commercial vehicle sector. According to the press releases, the combined entity would record annual sales of over 540,000 units and consolidated revenues of approximately 22 billion euros, with an extensive presence in the markets of Europe, India and the Americas.

The transaction value of 3.8 billion euros refers strictly to the Iveco Group's commercial and industrial vehicles division, excluding the defense segment.

Defense Division, Exempt from Takeover

A prerequisite and essential for the completion of the agreement was the separation of Iveco's military and defense vehicles division, known as IDV (Iveco Defense Vehicles).

•     Separate Sale: The IDV division was sold separately to the Italian security and aerospace company Leonardo SpA, partly owned by the Italian state.
•     Motivation: This move ensures that strategic technology and production capabilities essential to national security (including the production of military vehicles for the Romanian Army at the Petrești factory) remain under Italian control.

Rome's "Golden Power" Conditions

The conditional approval of the Italian Government was obtained by activating the "Golden Power" mechanism, which allows the state to intervene in transactions affecting strategic assets. Among the imposed conditions are:

•     Job Preservation: Tata Motors has publicly committed not to implement significant restructuring or plant closures for at least two years after the transaction is completed, ensuring the stability of the Italian industrial ecosystem.
•     Maintaining Production: Although Iveco's headquarters will remain in Turin, part of the production of commercial vehicles must be maintained on Italian territory.
•     Technological Control: The government has imposed measures to maintain control over certain dual (civilian and military) technologies, even in the civilian segment.

A Future with Synergies

Despite the conditions, both parties see the transaction as a huge opportunity. Iveco Group will benefit from the financial and industrial strength of the Indian group, accelerating investments in key areas such as electrification, fleet digitalization and the development of modular platforms. On the other hand, Tata Motors is strengthening its presence in the European heavy commercial vehicle market, a market in which it wants to become an undisputed leader.

The formal completion of the transaction, dependent on final regulatory approvals and the complete separation of the defense division, is expected in the second quarter of 2026. Until then, the two companies will continue to operate independently.