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:

Will JLR acquisition dent Tata’s profitability?

As Tata Motors hopes to arrange loan for the deal, its stock fell by 7 per cent.

• MTN-Reliance Communication talks extended to July 21
• US billionaire investor confirms interest in Spicejet

Featured Blog

Sagarika Ghose

Red Letter Day

Featured Slideshows

Related Headlines

powered by

• Will JLR acquisition dent Tata’s profitability?
• MTN-Reliance Communication talks extended to July 21
• US billionaire investor confirms interest in Spicejet

Keywords: Tata Motors, Jaguar

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."

Ford acquired Jaguar for $2.5 billion in 1989 and Land Rover for $2.75 billion in 2000. But the US auto major put the two marquees on the market in 2007 after posting losses of $12.6 billion in 2006 - the heaviest in its 103-year history.

Union, Minister give thumbs up

Ford's labour union, Unite, reacted positively to Tata's bid for the Land Rover brand. "We would have much preferred Ford to keep the companies in the family, but with the commitments Tata have given to the future of Jaguar, Land Rover we're obviously pleased they are in the game,” said Unite General Secretary Tony Woodley.

Union Commerce Minister Kamal Nath said the acquisition was “very good news”.