Shares of Tata Motors Ltd opened 2.4% lower and swung green on 31 July after the company announced a $4.5 billion deal to acquire Iveco’s trucks and buses that will broaden the commercial vehicle maker’s income base beyond India and provide access to the Italian company’s future technologies, including electrification.

The all-cash sale is the largest for Mumbai-based Tata Motors, which previously made a major acquisition in 2008 when it purchased Jaguar Land Rover from Ford Motor Co for $2.3 billion.

Tata Motors shares dipped as much as 2.4% on Thursday morning, reflecting concerns over the truckmaker’s potential need to raise significant amounts of debt and equity, but recovered their losses.

Iveco and Tata’s commercial vehicle division will generate approximately 22 billion euros ($25 billion), with half coming from Europe, 35% from India, and the remaining from the Americas, the Indian manufacturer said in a statement to the stock exchanges late Wednesday.

According to the company’s chairman, N Chandrasekaran, this is “the next logical step” following Tata Motors’ demerger of its three sectors – commercial vehicles, passenger automobiles, and electric vehicles.

“(This) will allow the combined group to compete on a truly global basis with two strategic home markets in India and Europe,” he said.

The acquisition, which is due to finalise in April 2026, will give Tata Motors’ trucks and buses a presence in the European market, where it will compete with Volvo and Daimler.

Tata already has a production and sales presence in Europe through Jaguar Land Rover, which has been a cash cow for the corporation but is facing rising competition in its key markets of China and the United States.

The company will also have access to Iveco’s future technologies, such as electrification and talent pool.

However, at 3:30 pm, the shares of Tata Motors closed 0.30% lower at Rs 666.45 on NSE.

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