Tata Motors to buy Iveco's CV business

$4.36 bn acquisition is Tata's biggest since Tata Steel acquired Corus

- Ayaan Kartik

Tata Motors Ltd announced the acquisition of Italian truck and bus maker Iveco on Wednesday for $4.36 billion in a bid to boost its commercial vehicle (CV) business, ahead of the demerger of its CV and passenger vehicles business expected later this year.

The country's largest commercial vehicle player will assume control of Italy's Agnelli family-backed Iveco, an acronym for Industrial Vehicles Corp., in its largest acquisition ever. This is its second big overseas deal this century after the company acquired Jaguar Land Rover in 2008 for $2.3 billion.

The acquisition is also the second-largest ever for Tata Group after Tata Steel's Corus Group purchase in 2007 for $13.1 billion.