Exor sells the Iveco group, halfway between the Indian giant Tata Motors and Leonardo. After months of rumors, the holding of the Agnelli-Elkann family concluded the transfer of the military branch Iveco Defense Vehicles (IDV) to the Italian company with public control of the aerospace and defense sector, in a roped with the German partner Rheinmetall.
The passage of the civil sector to the builder Tata Motors is completed by the framework: the voluntary opa worth about 3.8 billion, excluding defense activities and net proceeds deriving from defense activities, will be promoted by a new Dutch Srl of Law entirely controlled by the Indian car manufacturer.
Part of Iveco in Leonardo-Rheinmetall
The operation has been the subject of complex negotiations in the last 18 months with several international actors in the running. For the military division, Exor has also received preliminary offers from Knds (Franco-German group) and Czechoslovak Group (CSG), but the Italian executive has indicated a “national” solution as preferable as preferable, given the strategic relevance of IDV, which provides armored vehicles and combat vehicles to the Italian armed forces.
The Leonardo-Rheinmetall tandem has signed the acquisition agreement with a 1.7 billion offer, including debt, responds to national security needs and integrates with the rearm programs already underway in Italy, including a maxi-commissioned by 23 billion euros for the supply of armored and tanks in the next ten years. IDV, with 2024 revenues of 1.13 billion (+15% year on year), is a precious pawn in the industrial scheme.
The rest of Iveco a Tata Motors
At the same time, Exor worked on a separate agreement with Tata Motors for the rest of the perimeter Iveco (trucks, buses, industrial vehicles), which occupies over 36,000 employees in the world, of which around 14,000 in Italy, with production sites in Turin, Brescia, Suzzara, Foggia and Bolzano.
The Holding, the main shareholder of Iveco Group, has made the irrevocable commitment to support the public purchase offer and bring its shareholding, of about 27.06% of the capital and 43.11% of the overall voting rights in accession.
The partnership between the Agnelli family and the Tata group dates back to the 1950s and through this operation strengthens the presence of the Indian conglomerate in the European industrial vehicles market, allowing him to acquire technologies, platforms and consolidated production capacities.
On the work front, however, the picture remains uncertain. The government has convened a table with the unions for July 31st, but Iveco herself should not participate in the meeting. Workers’ organizations fear that there may be negative repercussions on the 14,000 Italian employees, between cuts and possible relocations.
Following the acquisition, the Indian giant has ensured through a note that will not close any plant or production site owned by Iveco Group and will not reduce the workforce, guaranteeing “the promotion of a culture of excellence, in which qualified employees will offer career training and development opportunities”.
Exor accelerates the exit from the automotive
With this move, Exor continues the progressive disengagement from the automotive and mobility sector, already started with the merger of Fiat Chrysler in Stellantis and with the sale of Magneti Marelli in 2018. John Elkann’s holding has undertaken a diversification strategy in recent years towards sectors with higher growth potential such as luxury (with entry into Christian Louboutin and Shang Xia), health (Philips Healthcare) and technology.
The Iveco operation would therefore represent the last step of a strategic repositioning.
