Acquisition Between Tata and Ford

Acquisition of British Icons On June 02, 2008, India-based Tata takes completed the acquisition of the jaguar and Land Rover (JLR) units from the US-based auto manufacturer Ford Motor Company (Ford) for US$ 2.3 one thousand thousand, on a cash issue-debt free basis. JLR was a part of Fords Premier automotive Group (PAG) and were considered to be British icons. Jaguar was involved in the manufacture of high-end luxury cars, bandage Land Rover make high-end SUVs. Forming a part of the purchase consideration were JLRs manufacturing plants, ii advanced design centers in the UK, national sales companies spanning across the world, and also licenses of all necessary intellectual property rights. Tata Motors had some(prenominal) major international acquisitions to its credit. It had acquired Tetley, South Korea-based Daewoos commercial fomite unit, and Anglo-Dutch Steel maker Corus.

Tata Motors long-term strategy included consolidating its side of meat in the domestic Indian market and expanding its international remnant by leveraging on in-house capabilities and products and also through acquisitions and strategical collaborations Analysts were of the view that the acquisition of Jaguar and Land Rover, which had a orbicular presence and a repertoire of well established brands, would sustain Tata Motors become one of the major players in the global automobile industry. On acquiring JLR, Rattan Tata, Chairman, Tata Group, said, We are very jolly at the prospect of Jaguar and Land Rover be a significant part of our automotive business. We have extensive respect for the two brands and will endeavor to preserve and skeletal system on their heritage and competitiveness, keeping their identities intact. We aim to support their growth, while holding true to our principles of allowing the management and employees to bring their experience and expertness to bear on the growth of the business. Ford had bought Jaguar for US$ 2.5 billion in 1989 and Land Rover for US$ 2.7 billion in 2000. However, over the... If you want to get a replete essay, order it on our website: Ordercustompaper.com

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