Tata Motors has gained control of Iveco after its €3.4 billion takeover offer exceeded the revised minimum acceptance threshold, AFP reports.
By the end of the initial offer period on October 26, shareholders had tendered 238.2 million shares, or 87.81% of the Italian truck and bus maker. Including shares already held by Tata and Iveco’s treasury shares, the Indian company will control about 89.42% of the business. In mid-October, the acceptance threshold was lowered from 95% to 80%, and the offer price was raised from €14.10 to €14.40 per share. Under Italian law, the offer will be extended for five trading days, from November 2 to 6, to allow the remaining shareholders to participate.
The deal ends the Agnelli family’s control of Iveco, which dates back to the company’s founding in 1975. Tata plans to combine the businesses into an international commercial vehicle group with annual sales of more than 540,000 trucks, buses and other vehicles.
One condition for completing the deal was Iveco’s sale of its defence business, including its armoured vehicle operations, to Italian aerospace and defence group Leonardo for €1.7 billion. The Agnelli family’s holding company, Exor, will continue to control agricultural and construction equipment maker CNH Industrial, including the New Holland and Case IH brands.