India's Tata Motors will buy Iveco in a deal valued at 3.8 billion euros ($4.36 billion), the companies said on Wednesday, after the Italian truckmaker separately agreed to sell its defence business to Leonardo.

The agreements confirm plans set out earlier this year to separate the Italian truck maker’s defense business from the rest of its operations.

The acquisition will create a €22 billion global CV giant with annual volumes of 540,000 units, expanding Tata's footprint into Europe and low-emission technology