Tata Motors secures a €3.875bn bridge loan for the acquisition of Iveco Group’s commercial vehicle division, marking a significant deal in Asia for the year. The loan, with a 12-month term, is supported by Tata Sons and has an interest rate margin of 102.5 basis points above Euribor.

Underwriters for the loan include Mitsubishi UFJ Financial Group, Morgan Stanley, and Morgan Stanley Senior Funding. Tata Motors has not commented on the loan yet. The acquisition is part of a growing trend in Asia Pacific of using loans for cross-border mergers and acquisitions.

Tata Motors signed an agreement in July to acquire Iveco’s commercial vehicle business in an all-cash tender offer, excluding the defense segment. The bridge loan is expected to be refinanced through equity and long-term debt within 12 to 18 months. Regulatory clearances are awaited for the takeover by April 2026.

The acquisition would expand Tata Motors’ influence in the European CV sector, adding to its 2008 acquisition of Jaguar Land Rover. Iveco Group comprises seven brands offering CVs, buses, powertrains, specialty vehicles, and financial services. Iveco Bus recently opened a new prototype and testing center in the Czech Republic.

Read more at Yahoo Finance: Tata Motors arranges $4.5bn bridge loan for Iveco acquisition