New Delhi, July 30 -- Tata Motors Ltd will acquire Italian truck and bus maker Iveco for $4.36 billion as it seeks to boost its commercial vehicle business ahead of the demerger expected by the end of 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, the company announced on Wednesday. The Agnelli family founded the Fiat automotive group.

The offer price is at a 34-41% premium to the volume-weighted average price for the three months to 17 July of 16.02 euros, said Tata Motors.

The company acquired Jaguar Land Rover in 2008 for $2.3 billion. The acquisition is the second largest for the Tata Gr...