The company is acquiring the commercial vehicle business of Iveco, excluding its defence business, through a voluntary tender offer at €14.1 per share, backed by bridge financing commitments from Morgan Stanley and MUFG.

Following Tata Motors' $4.4 billion acquisition of Iveco, management reassured investors about potential growth and earnings boosts, emphasizing the need for such moves in a stable commercial vehicle market.

India's Tata Motors will buy Iveco in a deal valued at 3.8 billion euros ($4.36 billion), the companies said on Wednesday, after the Italian truckmaker separately agreed to sell its defence business to Leonardo .