EU regulatory approvals for Tata Motors' $4.4 bn Iveco deal run behind schedule

Subscribe to enjoy similar stories.New Delhi/Mumbai: Regulatory approvals in Europe for Tata Motors Ltd’s $4.4 billion acquisition of Iveco are running behind schedule, potentially pushing the closure of its largest-ever buyout past the April-June target, according to two persons in the know.Pending clearances from the European Central Bank and the European Commission could delay revenue recognition and integration plans, adding near-term uncertainty even as the company continues to engage with regulators for an early closure.“Approvals from European Central Bank and European Competition Commission are still pending, which should have come a couple of months back. The deal is running behind schedule,” one of the persons mentioned above said on the condition of anonymity.In a 12 February presentation to investors, Iveco had noted that the timeline proposed by Tata Motors suggested all regulatory approvals should be in place by the end of the March quarter.After all regulatory approvals come through, Tata’s offer will be submitted to Italy’s securities market regulator Commissione Nazionale per le Società e la Borsa (Consob), following which the offer will be formally launched.

An extraordinary general meeting will be held by Iveco after the offer launch, following which the offer will formally conclude, the presentation had said.“The proposed transaction remains subject to receipt of customary regulatory approvals, which are currently under review and in process by the relevant authorities across jurisdictions,” a Tata Motors spokesperson told Mint in an emailed response.

“Most approvals have already been received and those pending are being actively worked upon for earliest closure. Tata Motors continues to engage