Italy has conditionally cleared the sale of truck manufacturer Iveco to Tata Motors, according to a parliamentary document cited by Reuters.
The decision was taken on 31 October, the report added.
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Tata Motors agreed in July to acquire Iveco in a deal valued at €3.8bn ($4.36bn).
The transaction has been structured to maintain Iveco’s operational independence. Plans include keeping the headquarters in Turin, safeguarding jobs and production sites under binding non-financial covenants—“no layoffs, and no plant closures for at least two years”—and largely preserving the current board with independent oversight.
Separately, Iveco’s defence subsidiary, Iveco Defence Vehicles (IDV), was sold to state-controlled defence group Leonardo for €1.7bn.
In September, Bloomberg reported that Tata Motors was arranging a €3.875bn bridge facility to fund the Iveco commercial vehicle acquisition.
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By GlobalDataThe 12-month loan is supported by a letter from Tata Sons, the Tata Group’s investment holding company.
According to analysis by GlobalData, the parent company of Just Auto, the tie-up would place the enlarged company alongside Traton and Volvo Group in global truck market share and production capacity.
Following the merger, the combined commercial vehicle business would generate roughly €22bn ($26bn) in annual revenue, with manufacturing sites across Europe, Asia and Latin America.
From a product and geographical viewpoint, Tata’s dominance in India and Southeast Asia is highly complementary to Iveco’s presence in Europe and Latin America, with no significant overlap in product lines or manufacturing geography.
The deal also gives Tata Motors access to Iveco’s FPT Industrial powertrain technologies, including electric, hydrogen, and natural-gas platforms, providing it with scope to expand its net zero ambitions.
