The European Commission has given TML Commercial Vehicles, the commercial vehicles arm of Tata Motors, the regulatory green light to acquire Italian truck and bus maker Iveco Group, according to a statement issued late Monday.

However, the deal remains dependent upon Iveco divesting its defence division—manufacturer of armoured vehicles—to fellow Italian group Leonardo for €1.7 billion, which is expected to happen.

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Turin-headquartered Iveco is in the process of spinning off its defence business, which is not included in the proposed acquisition by Tata Motors. The company had stated earlier that its board is reviewing all aspects of potential transactions.

The EU regulatory nod came amidst indications that Tata Motors would acquire Iveco from its principal shareholder, It

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