Tata Motors’ $4.4 billion Iveco acquisition delayed
Italian commercial vehicle maker Iveco said on Thursday its $4.4 billion acquisition of Tata Motors Ltd is now expected to be completed in the September quarter, pushing back the early June quarter deadline.
Iveco said the timeline was delayed because the Mumbai-based automaker was still awaiting regulatory approvals for the acquisition, although the Turin-based company had received almost all the necessary approvals.
Mint On 23 April, it was reported that Tata’s deal still had not received two approvals from European authorities; Waiting for this approval until the end of March 2026 threatened to delay the deal and the company’s plan to integrate the Italian firm’s business and operations.
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The acquisition of Iveco by Tata Motors has been delayed as Tata Motors is still awaiting regulatory approvals from authorities such as the European Central Bank and the European Competition Commission. Most other necessary permits have been obtained by Iveco.
The acquisition of Iveco by Tata Motors, originally planned for the June quarter, is now expected to be completed in the September quarter. This delay is due to pending regulatory approvals.
Tata Motors announced its plan to acquire Iveco for $4.4 billion in July 2025. This agreement aims to expand Tata Motors’ global presence in the commercial vehicle sector.
Pending regulatory approvals for Tata Motors’ acquisition of Iveco include those from the European Central Bank and the European Competition Commission, which are required because Iveco is a non-banking finance company.
The acquisition of Iveco is expected to help Tata Motors build a global commercial vehicle business with total sales of over 540,000 units and revenues of over $25 billion.
“Regulatory approvals for the acquisition of the Iveco Group are currently ongoing and most of the approvals have been obtained by Tata Motors. The final pending approvals are being actively pursued for the earliest closing,” Iveco said in its May 7 presentation.
An executive with direct knowledge of the matter said approvals from the European Central Bank and the European Competition Commission are still pending and should come in February-March.
The deal requires approval from the European Central Bank because Iveco also has a non-banking finance company.
Tata Motors did not immediately respond MintEmailed queries about the impact of delay in revenue recognition for 2026-27 and integration plans.
Shares of Tata Motors rose 1.3% in trading hours on Thursday, while the Nifty Auto Index rose 2.3%.
bold plans
The Mumbai-based automaker announced in July 2025 that it will acquire Iveco in a $4.4 billion deal to expand its global presence. Iveco was the commercial vehicle arm of Italian major Fiat before it was spun off into a separate firm. Both are part of the Agnelli family business empire.
This acquisition is seen to help Tatas build a global commercial vehicle business on a large scale with total sales of over 540,000 units and revenues of over $25 billion. This is also Tata Motors’ biggest acquisition since it bought Jaguar Land Rover for $2.3 billion in 2008. For the Tata group, this acquisition is the second largest after the acquisition of Corus Group by Tata Steel Ltd for $13.1 billion in 2007.
Analysts had previously stated that the company would budget for a delay in the deal due to the large number of regulatory approvals required.
The announcement also comes after Iveco reported a quarterly loss of 75 million euros in 2025-26, compared with a profit of 60 million euros in the previous year. Net income increased by 1% to 2.83 billion euros. The company was impacted by rework costs, slow volume growth and quality improvement-related costs in the bus segment.
“Profitability is expected to increase in the second half of 2026, thanks to the actions implemented in the first half and the acceleration of the efficiency program that will deliver further savings in OpEx throughout the full year,” Chief Executive Officer Olof Persson said in his May 7 presentation.
Analysts also raised concerns that Iveco’s declining performance could impact Tata Motors’ overall growth.
In a Jan. 30 note, analysts at Motilal Oswal Financial Services noted that visibility into Iveco’s financial statements is limited due to uncertainty in the markets in which it operates, including Europe and Latin America.
“(Tata Motors’) recent acquisition of Iveco will expose it to ongoing global macro uncertainties, thus leading to a potential downgrade if the demand environment does not improve soon,” analysts said in a note.
