Tata Motors pauses $4.4bn Iveco takeover pending European approvals
Business
Tata Motors is hitting pause on its $4.4 billion plan to buy Italian truck maker Iveco, now aiming to close in the September quarter.
The holdup? Tata's still waiting on key regulatory approvals from Europe, while Iveco has most of its permissions sorted.
Deal could create $25bn vehicle giant
This would be Tata's biggest move since grabbing Jaguar Land Rover in 2008 and could create a commercial vehicle giant with over 540,000 sales and $25 billion in revenue.
But there are some bumps, like Iveco posting a €75 million loss recently and slow growth in its bus business.
Plus, analysts warn the deal could expose Tata to economic risks in Europe and Latin America if things don't go as planned.