The transaction sees the group split between two buyers: the military division goes to Leonardo and Germany’s Rheinmetall, while Tata Motors acquires the civilian branch through a €3.8 billion public offering.
Leonardo and Rheinmetall acquire Iveco Defence vehicles
Iveco Defence Vehicles, the division specialized in armored and combat vehicles, has been sold for €1.7 billion (including debt) to a joint venture between Italy’s Leonardo and Germany’s Rheinmetall. In 2024, the unit reported revenues of €1.13 billion – a 15% increase from the previous year.
The acquisition aligns with Italy’s national security priorities and defense rearmament plans, including a €23 billion investment in new tanks and armored vehicles. The Italian government supported the domestic solution over rival bids from international players such as KNDS and CSG.
Tata Motors takes over Iveco’s civilian business
At the same time, Tata Motors has launched a €3.8 billion takeover offer for Iveco’s civilian division, which includes trucks, buses, and industrial vehicles. The business segment employs over 36,000 people globally – around 14,000 of them in Italy – and operates production facilities in Turin, Brescia, Suzzara, Foggia, and Bolzano.
Exor, which holds 27.06% of Iveco’s capital and 43.11% of voting rights, has committed irrevocably to the offer, facilitating the deal’s closure. The acquisition strengthens Tata’s presence in the European market and deepens its longstanding relationship with the Agnelli family, which dates back to the 1950s.
While Tata Motors has pledged not to close factories or cut jobs, Italian labor unions remain wary, voicing concerns over possible offshoring or restructuring. A meeting between the Italian government and social partners is scheduled for July 31, although Iveco itself is not expected to attend – a move that has sparked further unease among workers.
