Tata Motors is in advanced discussions to buy Iveco Group’s commercial truck operations from Exor NV in a deal valued at about $4.5 billion, people familiar with the matter said. The purchase would mark the Indian company’s largest acquisition and broaden its presence in Europe while adding electric- and autonomous-vehicle technology to its portfolio. Separately, Iveco has agreed to sell its defence division to Italian aerospace and defence contractor Leonardo SpA for an enterprise value of €1.7 billion ($1.95 billion). The disposal is part of Exor’s plan to break up the Turin-based manufacturer of commercial trucks and military vehicles. The shake-up took a fresh twist when Tata Motors lodged an all-cash offer of about €3.8 billion for the same Iveco Defence unit, according to people with knowledge of the proposal. Iveco’s board is reviewing the higher bid, setting the stage for a potential contest between Tata and Leonardo. Exor has not commented on the competing approaches.