Leonardo to Buy Iveco’s Defense Unit for Almost $2 Billion

Iveco Group NV agreed to sell its defense unit to Leonardo SpA for an enterprise value of €1.7 billion ($1.95 billion), in a step toward a planned breakup of the maker of commercial trucks and military vehicles.

The deal for Iveco’s military vehicles will help Leonardo consolidate its position in the European land defense sector, the company said Wednesday in a statement. The deal with Leonardo, which faced pressure from rival suitors, keeps the defense operations in local hands, satisfying a key demand of the Italian government.