Tata Motors In Discussions To Buy Iveco Group: The Impact of 'Golden Power' Laws on Decision-Making

By Amit Jangra | Published Date : July 26, 2025

Tata Motors eyes Iveco acquisition to expand Tata trucks in Europe, but Italy’s Golden Power law may impact the deal.

There’s some big news doing the rounds in the world of trucks and commercial vehicles. According to Reuters, India’s Tata Motors has shown interest in buying into Iveco Group, the well-known Italian vehicle manufacturer.

Nothing’s final yet, but talks have apparently taken place with Exor, the investment company behind the Agnelli family. That’s the group with a large stake in Iveco. It’s not your everyday business move — this one has a lot riding on it. And not just from Tata's side.

A big question is floating around: will the Italian government’s “Golden Power” law allow the deal to go ahead?

Tata’s Interest: Not Surprising

Table of Contents

1. Tata’s Interest: Not Surprising

2. What’s the Deal with Iveco?

3. A Look at the Numbers

4. Why Golden Power Law Matters

5. What About the Defence Unit (IDV)?

6. Why This Deal Makes Sense for Tata

7. So, What Happens Next?

8. Final Thoughts

If you’ve followed Tata Motors over the years, this move isn’t unexpected. The company already makes everything from Tata trucks and heavy-duty commercial vehicles to electric models, and it’s built a strong reputation for expanding overseas — just look at how they acquired Jaguar Land Rover.

Getting involved with Iveco could give Tata a stronger footprint in Europe, especially in the truck and bus segment. It’s a bold step, but a smart one if they want to scale up outside India.

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What’s the Deal with Iveco?

Iveco is no newbie in the transport industry. They’ve been around for decades, building trucks, buses, and engines. One part of their business that stands out is IDV — a special division that works on defence and civil protection vehicles.

This IDV arm isn’t just about transport; it’s tied closely to national safety. And that’s where things get a bit sensitive.

Even though talks with Tata, a major player in Tata commercial vehicles and a growing name in electric trucks, are happening, sources say IDV might not be included in the deal. It could continue separately, which makes sense given how defence is viewed by governments worldwide.

A Look at the Numbers

Exor currently owns about 27% of Iveco, but holds over 43% voting power. The company is valued at nearly $4.9 billion. That’s significant, though still smaller than the likes of Volvo, Daimler, or Traton, which dominate Europe’s commercial vehicle market.

After news of Tata’s interest came out, Iveco shares jumped more than 8%. That kind of market reaction shows just how seriously investors are taking this development.

Why Golden Power Law Matters

This is where the story gets interesting. Italy has something called the Golden Power law — a legal framework that allows the government to step in and block or place conditions on foreign investments, especially when it involves sensitive sectors like defence, energy, or telecommunications.

A few years ago, the same law was used to stop a Chinese company, FAW, from buying Iveco. So, this isn’t just legal theory — it’s a real hurdle Tata might have to cross.

If Tata goes ahead with a formal offer, it will have to get past a government review. And even then, approval might come with strings attached.

What About the Defence Unit (IDV)?

The IDV unit is a major reason why this deal may be tricky. It builds specialized vehicles used in defence operations. Reports say Iveco has been trying to separate or sell this arm since early 2022.

So far, there have been multiple buyers showing interest — companies like Leonardo (Italy), Rheinmetall (Germany), KNDS, and Czechoslovak Group.

But not much has moved forward. The reason? Deals involving defence always bring more complexity — especially when foreign buyers are involved.

Why This Deal Makes Sense for Tata

Tata is a major name back home in India. They make everything from diesel trucks to electric buses. By getting involved with Iveco, they can tap into newer markets and tech — especially in Europe, where regulations and customer demands are different.

Even if the deal only includes a part of Iveco, it could still bring benefits in manufacturing, engineering, and product design.

But like with most international deals today, it’s not just about business logic — politics plays a big part too.

So, What Happens Next?

Right now, it’s all still early. There’s no official confirmation from Tata, Exor, or Iveco. They’ve all declined to comment, which is typical for talks like this.

If the offer becomes official, it’ll trigger a formal review process under Italy’s Golden Power rules. From there, it’ll depend on whether the Italian government feels comfortable allowing the transaction — especially if any part of the defence unit is involved.

Final Thoughts

This story is a mix of business, regulation, and international strategy. Tata Motors clearly wants to grow its footprint beyond India, and Iveco could be a valuable stepping stone.

But laws like Italy’s Golden Power exist for a reason. Countries are becoming more cautious about who controls what — especially when it comes to sectors like defence.

If Tata can structure the deal smartly — perhaps without the IDV division — and gain the right approvals, this could turn into a win for both sides. But for now, it's a waiting game.

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Frequently Asked Questions on Trucks

1. Why is Tata Motors interested in acquiring Iveco Group?

Ans: Tata Motors aims to expand its global presence in the commercial vehicle market. Acquiring Iveco could strengthen its position in Europe, especially in the truck and bus segment.

2. What is Iveco Group known for?

Ans: Iveco Group manufactures trucks, buses, and engines. It also has a defence division called IDV that produces specialized military and civil protection vehicles.

3. What is Italy’s Golden Power law?

Ans: Golden Power is a legal framework that allows the Italian government to restrict or block foreign investments in key industries, like defence, energy, and transportation.

4. Will Tata be able to acquire Iveco’s IDV (defence) division?

Ans: It’s unlikely. Reports suggest the IDV division may be excluded from the deal due to its national security importance and the Golden Power regulation.

5. Has Tata Motors confirmed the acquisition of Iveco?

Ans: As of now, Tata Motors, Exor, and Iveco have not officially confirmed the deal. Discussions are still ongoing, according to Reuters.