Tata Motors will not raise its €14.40 per share buyout offer for Italian commercial vehicle manufacturer Iveco Group before the tender offer closes on October 26. The revised bid values the transaction at up to €3.91 billion, or approximately ₹41,591 crore.
Speaking after the company reported September quarter financial results on October 23, Tata Motors managing director and chief executive officer Girish Wagh reaffirmed that the price represents the final terms.
“The best and final offer is absolutely the best and final offer and it will remain at €14.4 per share.”
Activistic resistance surfaced ahead of the deadline. Petrus Advisers, an investment firm holding a 3.8 per cent stake in Iveco, pushed shareholders to reject the terms.
The investor presented figures on September 29 arguing that Tata Motors’ initial €14.10 per share bid priced Iveco at roughly two times its estimated 2028 earnings before interest and tax. Global competitors such as Volvo, Daimler Truck, Traton and Paccar trade at an average multiple near seven times EBIT. Petrus Advisers argued that existing shareholders should capture higher synergies from the combination alongside extra payment for procedural delays.
Tata Motors countered by raising the cash offer on October 9 by €0.30 per share, equivalent to about ₹31.91 at prevailing foreign exchange rates. Wagh described the increase as a goodwill gesture following a four-month transaction delay.
Buying Iveco gives Tata Motors an industrial manufacturing footprint across continental Europe. The arrangement carves out Iveco’s defence vehicle division, combining purely commercial truck and bus operations across global markets.
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