New Delhi, Jul 30 (PTI) Tata Motors on Wednesday said its board has approved a proposal to acquire Italian firm Iveco Group NV in a deal pegged at around 3.8 billion euros (nearly Rs 38,240 crore).
The executive committee of the company’s board has approved the acquisition of 100 per cent common shares of Iveco Group NV, through all cash voluntary tender offer (excluding defence business), subject to all regulatory, statutory and all other necessary approvals, the Mumbai-based auti major said in a regulatory statement.
The transaction seeks to acquire 271,215,400 common shares, through a voluntary tender offer, it added.
The offer is subject to a minimum acceptance level of 80 per cent of the shares tendered.
A cash consideration of Euro 14.1 per tendered share is proposed for Iveco Group N.V. (excluding the Defence Business), the company stated.
The Offer represents a total consideration of around EUR 3.8 billion for Iveco Group, excluding Iveco’s defence business and the net proceeds from the defence business separation, it said.
“This is a logical next step following the demerger of the Tata Motors Commercial Vehicle business and will allow the combined group to compete on a truly global basis with two strategic home markets in India and Europe,” Tata Motors Chairman Natarajan Chandrasekaran said.
The combined group’s complementary businesses and greater reach will enhance Tata Motors’s ability to invest boldly. I look forward to securing the necessary approvals and concluding the transaction in the coming months, he added.
Suzanne Heywood, Chair of Iveco Group said: “We are proud to announce this strategically significant combination, which brings together two businesses with a shared vision for sustainable mobility.” PTI MSS RKL MR
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