Agencies
London, Mar 26:
Creating history, India's top corporate Tatas on Wednesday acquired luxury auto brands -- Jaguar and Land Rover -- from Ford Motor for an all cash deal of 2.3 billion dollars, in a deal that it pursued for nine months.
Beating compatriot Mahindra and Mahindra for the prestigious brands, just a year after acquiring steel giant Corus for 12.1 billion dollar, Tatas announced the deal they signed with Ford, which on its part would chip in 600 million dollar towards JLR's pension plan.
The deal was announced after protracted negotiations that Tatas had with JLR union workers.
"We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business," Group Chairman Ratan Tata said after making the deal public.
"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.
As part of the transaction, Ford will continue to supply Jaguar and Land Rover for differing period with powertrains, stampings and other vehicle components in addition to a variety of technologies such as environmental and platforms.
Ford has also committed to providing engineering support, including Research and Development plus information technology, accounting and other services.
In addition, Ford Motor Credit Company will provide financing for JLR dealers and customers during a transitional period, which can vary by market, for up to 12 months.
Ford Motor CEO and President Alan Mulally said: "Jaguar and Land Rover are terrific brands. We are confident that they are leaving our fold with the products, plan and team to continue to thrive under Tata's stewardship.
"Now it is time for Ford to concentrate on integrating the Ford brand globally, as we implement our plan to create a strong Ford Motor Co that delivers profitable growth for all," he said.
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