The Agnelli family, through their investment firm Exor, is currently in talks with India’s Tata Motors regarding the potential sale of the Italy-based truck manufacturer, Iveco. This news, reported by Reuters, has sparked interest in the automotive industry as Tata Motors considers acquiring a controlling stake in Iveco.
Iveco, known for its production of trucks, buses, and engines, has a market capitalization of approximately €4.2bn ($4.9 billion) and is considered one of the smaller players among Europe’s truck manufacturers. The potential sale would exclude Iveco’s defense division, Iveco Defence Vehicles, which the company plans to divest by the end of 2025, with offers valuing the division at up to €1.9bn.
Exor holds a 27.1% stake in Iveco, representing 43.1% of the voting rights. The Italian government has previously intervened in the sale of the company, blocking a bid from Chinese firm FAW in 2021. Since then, Iveco has operated independently after being spun off from CNH Industrial.
With approximately 36,000 employees worldwide, a significant portion based in Italy, any transaction involving Iveco is expected to be closely monitored under Italy’s ‘golden power’ legislation, allowing the government to influence deals involving strategically important companies.
The discussions between the Agnelli family and potential buyers, including Tata Motors, have not been previously disclosed, highlighting the significance of these ongoing negotiations. The outcome of these talks could lead to a notable shift in the European automotive landscape.
Following the news of the discussions, Iveco’s stock value experienced a significant increase on the Milan stock exchange, closing 8.3% higher on 18 July. Italian trade unions have called for a meeting with Industry Minister Adolfo Urso to discuss the implications for the company’s future.
In conclusion, the potential sale of Iveco to Tata Motors represents a significant development in the automotive industry, with implications for both companies and the broader European market. Stay tuned for further updates on this evolving story.
