Agnelli Family Negotiates Sale of Iveco with Tata Motors as Potential Buyer

According to Reuters, three sources have revealed that the Agnelli family is negotiating the sale of truck manufacturer Iveco, with Tata Motors from India mentioned as a potential buyer. Two of the sources indicated that Tata Motors has been in contact with the Agnelli family's investment company, EXOR, regarding the family's stake in the Iveco Group. However, this business sale does not include Iveco's IDV defense business. Both Exor and Iveco declined to comment, and Tata Motors did not respond to requests for comment from foreign media. Following Reuters' report, Iveco's stock price rose as much as 9.7% on the Milan Stock Exchange, closing up 8.3% on July 18. Italian unions responded to the Reuters report by calling for Industrial Minister Adolfo Urso to convene relevant parties to discuss the company's future prospects. Iveco employs approximately 36,000 people, with 14,000 in Italy. In May of this year, Iveco stated that it would advance plans to consider spinning off or selling its defense business by the end of 2025, and that it had received offers from potential buyers. One source mentioned that while pursuing the spin-off or sale of the defense business, Exor has engaged in negotiations with several non-European partners regarding potential sales. Exor holds a 27.1% stake and 43.1% voting rights in Iveco. Iveco also manufactures buses and engines, with a market capitalization of approximately €4.2 billion (about $4.9 billion). As the smallest truck manufacturer in Europe, Iveco has long been viewed by investors and analysts as a potential acquisition target. However, its operations in the defense sector complicate any potential transaction and limit the range of potential buyers. In 2021, the Italian government blocked a takeover proposal of Iveco by China's FAW Group. At that time, Iveco belonged to the Agnelli-controlled industrial group CNH, but was spun off and separately listed in early 2022.