By Cristina Gallardo
Italian truck maker Iveco Group agreed to sell its commercial vehicles unit to Tata Motors and its defense business to Leonardo, in deals worth 3.8 billion euros ($4.39 billion) and 1.7 billion euros respectively.
The agreements, announced Wednesday, confirm plans set out earlier this year to separate Iveco's defense business from the rest of its operations.
Leonardo, the Italian defense and aerospace company, agreed to buy Iveco Group's defense business, including its IDV and Astra brands, which produces military trucks as well as armored, amphibious and multi-role vehicles. The move, which should be completed by March 31, 2026, is aimed at creating an Italy-based European land defense champion, Leonardo said.
Meanwhile, Tata Motors agreed to buy all of Milan-listed Iveco's shares left after spinning off its defense business, at 14.1 euros a share in cash. This represents a 22%-25% premium on the average share price for the three months to July 17 of 16.02 euros.
Tata Motors Chair Natarajan Chandrasekaran said the acquisition of Iveco's commercial vehicles business will allow it to compete on a truly global basis with two strategic home markets in India and Europe, and enhance its ability to invest boldly.
The completion of Tata's deal is conditional on the separation of Iveco's defense business, the two companies said in a joint statement.
The acquisition, which is subject to merger control and other financial regulatory clearances, should be completed in the first half of 2026, the companies said.
Iveco's Chair Suzanne Heywood said both transactions will be "strongly positive in terms of the security of employment."
Write to Cristina Gallardo at cristina.gallardo@wsj.com
(END) Dow Jones Newswires
July 30, 2025 12:46 ET (16:46 GMT)
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