Tata's new wheels: Jaguar, Land Rover | Tata rules UK

HELLO, TATA: Ford acquired Jaguar in 1989 and Land Rover in 2000.

      

Other stories in the section:

Sonia more powerful than Hillary, Merkel beats all

The latest Forbes list of 100 most powerful women is out.

• Nano Trouble: Singur's loss may be Uttaranchal's gain

• India beats China to Imperial Energy Co bid

Featured Blog

Rajdeep Sardesai

Bhiwani to Beijing: Lessons from a journey

Featured Slideshows

Related Headlines

powered by

• Tata- Land Rover Jaguar deal in its final lap
• Tata Motors may acquire Jaguar, Land Rover
• Ford prefers Tata for Jaguar, Land Rover auction

Keywords: Ratan Tata, Land Rover

Mumbai: Tata Motors Ltd said on Wednesday it has agreed to buy luxury brands Jaguar and Land Rover from Ford Motor Co for about $2.3 billion.

Tata Motors said in a statement that Ford would contribute up to about $600 million to Jaguar/Land Rover pension plans. Tata Motors, the country’s top bus and truck maker, has been in talks with Ford since it was chosen as the front-runner to buy Jaguar and Land Rover a few days into 2008.

Shares in Tata Motors, also India's number three car maker, closed down 0.1 percent at 679.40 rupees in a Mumbai market that fell 0.8 percent.

"The transfer of ownership to Tata Motors is expected to close by the end of the next quarter, subject to applicable regulatory approvals," said a statement by the group.

"The total amount to be paid in cash by Tata Motors for Jaguar, Land Rover upon closing will be approximately $2.3 billion. At closing, Ford will contribute up to approximately $600 million to the Jaguar, Land Rover pension plans."

The announcement comes barely a year after the group acquired Anglo-Dutch steel maker Corus for approximately $12 billion to catapult the Tatas as the fifth largest producer of the commodity in the world.

Tata officials said Ford will continue to supply Jaguar and Land Rover vehicle components for an agreed period in addition to a wide variety of technologies, such as environmental and platform technologies.

"We are very pleased at the prospect of Jaguar, Land Rover being a significant part of our automotive business," said Tata group chairman Ratan Naval Tata, 70, who has spearheaded the conglomerate's global acquisition bid in recent years.

"We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact," he said in a statement.

"We aim to support their growth, while holding true to our principle of allowing the management and employees to bring their experience and expertise to bear on the growth of the business."