One of the largest car companies in India, Tata Motors is going to make its biggest deal ever. Tata Motors is going to buy EVECO, an Italian truck -making company for US $ 4.5 billion i.e. about 40 thousand crores, is the company of Egnelli Group. Earlier, Tata Motors had the biggest deal of Jaguar Land Rover (JLR) in 2008 in 2008.
According to media reports, the formal announcement of acquisition can be done by Wednesday. The boards of Tata Motors and EVECO are meeting to approve a big deal on Wednesday. Some sources have given this information on the condition of anonymity, because the conversation is still going on at a private level. Eveko said on Tuesday that he is in talks about his defense business and two different deal related to the rest of the company.
Tata will buy stake in this way
The company said that the board is carefully reviewing and evaluating all aspects of these possible deals. However, Tata Motors did not give much information about the deal. According to those who keep the information, according to the people, Tata Motors is not buying this EVECO directly from Agnelli. Tata will buy 27.1% stake from Investor Exor in Agnelli Family. The tender offer will be launched for small shareholders to buy the rest of the part. EXOR also has 43.1% voting rights in IVECO.
The relationship with Tata is old
The Board of Exor and IVECO is liking Tata for the deal, as the AGNELLI family and TATA Group relationships are old, and former chairman Ratan Tata has also been fond of automobiles. Tata’s first Fiat was also a joint venture in India with Fiat Motors. The Agnelli family also holds a big stake in Ferrari and Stellantis (Auto Group with several companies including Fiat brand). If sources are to be believed, talks have been going on for the last one and a half months and it has gained momentum in recent weeks. Both sides have signed an exclusive agreement for negotiations, which will end on 1 August.