Tata Motors drops amid reports of $4.5 billion bid for Italy's Iveco

Tata Motors slipped 3.37% to Rs 669.10 following media reports that the company is in advanced talks to acquire the truck business of Italy-based Iveco Group from the Agnelli family in a deal valued at $4.5 billion.

According to the reports, the potential acquisition would include Ivecos commercial and defence truck operations, making it one of the biggest deals in Tata Groups history. If sealed, the transaction would mark Tata Motors largest buyout since its $2.3 billion acquisition of Jaguar Land Rover (JLR) in 2008, and potentially the groups second-largest after Tata Steels purchase of Corus in 2007.

The market, however, appeared less than enthused. Investors expressed concerns about the financial strain the acquisition could place on Tata Motors balance sheet, especially at a time when JLR is undergoing major emissions-related upgrades.

A foreign brokerage maintained a 'Sell' rating on the Tata Motors stock with a target price of Rs 690, cautioning that the potential Iveco deal may trigger a mandatory open offer under European regulations. Based on current valuations, Tata Motors could be looking at an outlay of over 1.5 billion, the brokerage added. The firm also flagged that while Indian peers are trimming their European manufacturing exposure, Tata Motors seems to be doubling down, adding to leverage risks.

Meanwhile, the BSE has sought a clarification from Tata Motors on the reported negotiations. A response from the company is awaited.

Tata Motors, part of the Tata Group, is a global automobile manufacturer of cars, utility vehicles, pickups, trucks, and buses. The company's consolidated net profit declined 49.6% to Rs 8,470 crore on 0.5% rise in net sales to Rs 1,18,927 crore in Q4 FY25 over Q4 FY24.

The auto major will announce Q1 results on 8 August 2025.

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