Automobile Desk: Indian automobile giant Tata Motors is now all set to establish its presence in the European and South American markets. The process of acquisition of Italy's famous Iveco Group has reached its final stage. Italy's financial market regulator Consob has approved Tata Motors' international commercial vehicle arm 'TML CV Holdings B.V.' has given its official approval to the offer document submitted by (TML CV Holdings BV).
The company has confirmed this important achievement in its recent report to the stock market. This green signal was issued by the Italian regulator on September 3, after which almost all the major administrative and legal obstacles standing in front of this international deal have been eliminated. Just before this, on September 1, the European Central Bank (ECB) had also approved this process under banking and financial rules. Additionally, the necessary no-objection certificates have already been received from key bodies such as the Financial Conduct Authority (FCA) of the UK, Bank of Spain and the Securities and Exchange Board of India (SEBI).
Under this acquisition process, Tata's subsidiary Iveco will issue an open tender offer to acquire all the public shares of the Group. Tata Motors set the price at 14.10 euros per share, which also includes the dividend component. The valuation of this entire deal in Indian currency comes to approximately ₹41,580 crore (3.8 billion euros).
Let us tell you, the tender process for Iveco Group shareholders will formally start on September 7 at 8:30 am (CET). Investors have been given the initial deadline to sell their shares till 5:30 pm on October 26. Keeping in mind the market conditions, this time period can be extended further.
As per the financial terms of the deal, investors who tender their shares will be paid and shares settled by October 30. If all the legal conditions are met as per the rules, the tender window will be re-opened for 5 additional trading days between November 2 and November 6. According to the information, there is a plan to complete the payment of this second phase by November 13. The tender is being launched primarily in Italy, but is also open to US-based investors in compliance with US securities laws.
Automobile experts believe that this acquisition of Iveco will take Tata Motors' global commercial vehicle portfolio to new heights. Through this deal, the company will directly benefit from an established manufacturing network, advanced technology, and huge dealership base in large and competitive markets such as Europe and Latin America.
