Tata Motors acquires European commercial vehicle maker Iveco for $4.4bn
Tata Motors just made a big move by snapping up Italian truck and van maker Iveco for about €3.8 billion (roughly $4.4 billion).
The deal doesn't include Iveco's defense arm, which is being sold separately.
For Tata, this is all about leveling up their commercial vehicle game and finally getting a real manufacturing footprint in Europe.
The buyout will go through a Tata subsidiary in Netherlands
The buyout goes through a Tata subsidiary in the Netherlands, with Morgan Stanley and MUFG Bank helping finance the whole thing.
Once it's done, Iveco will disappear from the Milan stock exchange.
Also, Exor—the Agnelli family holding company—has agreed to sell its 27% stake to Tata at €14.1 per share (all cash), but only after the defense business splits off.
This deal could turn Tata into a global force
This deal could turn Tata into a global force in commercial vehicles, with combined annual sales expected to top 540,000 units and revenues near €22 billion.
It also means approximately 50% of revenues will come from Europe—a huge leap for an Indian brand that used to have limited reach there.
If you're interested in how Indian companies are taking on global markets, this is one to watch.