Shares of Tata Motors Ltd fell 3.5% after hitting a day’s high of Rs 690 on 30th July, even as the company announced plans to acquire Italy-based Iveco Group’s truck business for $4.5 billion from the Agnelli family.

Iveco Group has confirmed that it is in talks to sell its defence and commercial truck business. Discussions are reportedly ongoing with Tata Motors for the commercial trucking division.

If the deal goes through, it would be Tata Group’s second-largest acquisition, following the Corus deal. Moreover, it would be Tata Motors’ largest purchase since acquiring Jaguar Land Rover for $2.3 billion in 2008.

Both Tata Motors and Iveco boards are expected to approve the deal today, sources said. The acquisition could boost Tata Motors’ scale and provide access to advanced powertrain technologies.

Tata Motors is also undergoing a demerger, under which its Commercial Vehicle business will operate separately. This segment holds a 49% share in heavy and 30% in light commercial vehicles in India. It recorded revenue of Rs 75,000 crore, EBITDA of Rs 8,800 crore, and free cash flow of Rs 7,400 crore last year. Additionally, the unit is expected to be net cash positive by the planned demerger in December 2025.

At 9:42 AM, the shares of Tata Motors were trading 3.11% lower at Rs 670.80 on NSE.

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