Iveco to Break Up With Sale of Company to Tata, Leonardo (2)

Iveco Group NV agreed to break itself up, selling its defense unit to Leonardo SpA and the rest of the Italian truck maker to Tata Motors Ltd in deals totaling about €5.5 billion ($6.3 billion).

Leonardo will pay €1.7 billion including debt for the military vehicle business, according to a statement Wednesday. The rest of Turin-based Iveco, which makes a range of commercial trucks and buses, is set to be acquired by Tata for about €3.8 billion.

Acquiring Iveco’s truck operations would give Tata a toehold in Europe’s commercial-vehicle industry, boosting the Indian firm’s presence in a major market nearly ...