India’s Tata Motors has reached an agreement to buy Italian commercial-vehicles-and-buses producer Iveco for 3.8 billion euros, the two companies said on Wednesday.

The deal does not include Iveco’s defence division, which is being sold to Italian defence-and-aerospace giant Leonardo for 1.7 billion euros.

As a result of the operations worth 5.5 billion euros in total, Exor, the Elkann family’s holding company which owns just over 27% of Iveco, is set to pocket 1.5 billion euros.