Shares of Tata Motors Ltd declined 0.47 per cent to Rs 458.20 during Monday’s trading session after the company announced an all cash voluntary tender offer to acquire all common shares of Iveco Group. The proposed transaction values the Italian commercial vehicle manufacturer at around 3.82 billion euros.Under the proposal, TML CV Holdings B.V., a Tata Motors entity, has offered 14.10 euros for each common share of Iveco Group. The tender offer will remain open for acceptance until October 26.According to Tata Motors’ filing with the stock exchanges, the offer covers all issued common shares of Iveco Group. The transaction includes customary conditions, including a minimum acceptance requirement of 95 per cent of Iveco’s common shares. This threshold could automatically fall to 80 per cent if shareholders approve the back end resolution at the Extraordinary General Meeting.Tata Motors shares were trading 0.47 per cent lower at Rs 458.20. According to Bloomberg data, the 12 month consensus price target for Tata Motors was Rs 528.27, based on recommendations from 23 analysts. This target indicates a potential upside of around 15.3 per cent from the current level.Tata Motors said the proposed combination would bring together two businesses with complementary product ranges and capabilities. The company noted that there is limited overlap between their industrial and geographical operations, which could help create a more diversified business with a stronger international presence. The combined entity is expected to have annual sales exceeding 5,90,000 units.The company said the combined businesses would generate revenue of around EUR 21 billion, equivalent to approximately Rs 2,28,000 crore. Europe would account for 46 per cent of the revenue, followed by India at 32 per cent, South America at 8 per cent and other global markets at 14 per cent.Tata Motors stated that the combination could strengthen the group’s ability to develop and provide innovative and sustainable mobility solutions. By using the supplier networks and capabilities of both businesses, the combined company would be able to serve customers across international markets more effectively.The company also highlighted the potential for stronger growth and greater value creation for stakeholders. Tata Motors said retaining the existing industrial presence and employee communities of both groups could support a smoother integration process.The company further said the global commercial vehicle industry is undergoing rapid transformation. Against this backdrop, bringing together Tata Motors’ commercial vehicle business and Iveco Group could create a stronger platform with a broad customer base and a geographically diversified presence.According to Tata Motors, the enlarged business could benefit from improved operating leverage by distributing capital expenditure across higher volumes. The combination could also generate operational efficiencies and help reduce fluctuations in cash flows, which are common in the commercial vehicle industry.Tata Motors also said the transaction could provide an opportunity to further strengthen Iveco Group’s powertrain business, FPT, by combining capabilities and resources across the two businesses.