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Alvis is to acquire the Vickers Defence tank manufacturing business from Rolls-Royce for £16m, which will involve the transfer of 1,300 staff at sites in Newcastle, Wolverhampton and South Africa.

Alvis is selling a division that manufacturers bomb disposal robots to Northrop Grumman of the US for £1.4m, and job losses are expected among the 31 Coventry-based workers.

Alvis has sold Barracuda Technologies, its camouflage equipment subsidiary, to Saab of Sweden for up to £5.6m.

Alvis is acquiring Hagglunds Vehicle, the Swedish armoured vehicle maker, from Incentive for £75m.