Tata Motors confirms Jaguar, Land Rover deal with Ford for $2.3 billion
26 March 2008
Mumbai: Tata Motors today said that it had entered into a definitive agreement with the Ford Motor Company for the purchase of Jaguar and Land Rover for $2.3 billion upon closing.
The transaction includes the acquisition of brands, plants and intellectual property rights.
"We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business," said Ratan Tata, chairman, Tata Sons and Tata Motors, in a communiqué. "We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact."
Tata also said, "We aim to support their growth, while holding true to our principles of allowing the management and employees to bring their experience and expertise to bear on the growth of the business."
The transfer of ownership to Tata Motors, India's largest automobile company with revenues of $7.2 billion in 2006-07, is expected to close by the end of the next quarter, subject to applicable regulatory approvals.
The deal allows Ford to raise a significant amount of money for its restructuring effort, yet maintain its ties with the two brands.
At closing, Ford will contribute up to approximately $600 million to the Jaguar Land Rover pension plans, an issue that is reported to have been under intense negotiations between the two companies.