ROME — Italian defense giant Leonardo has agreed to buy Italy’s Iveco Defence Vehicles for €1.7 billion ($1.9 billion), ending months of speculation about the future of the up-for-sale military vehicle maker.

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.

Tata Motors and Iveco Group have announced a definitive agreement that will see the Indian automotive major acquire the European commercial vehicle