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).

Tata Motors is set to acquire Iveco Group. After the transaction, Iveco will retain its workforce as well as its headquarters in Turin, Italy

Shares in Iveco dropped as much as 6% on the Milan bourse in early market trade after the Italian truck maker sold its defence business to Leonardo and the rest of the company to India's Tata Motors .