New Delhi, Mar 26 (UNI) After months of speculation and several postponements, home grown Tata Motors today said it has acquired Jaguar and Land Rover (JLR) from Ford Motors for 2.3 billion dollars, making it the largest acquisition by an Indian company in the automobile sector.
The deal comprises brands, plants and Intellectual Property Rights, and 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.
At closing, Ford will then contribute up to about 600 million dollars to the Jaguar Land Rover pension plans.
Commenting on the agreement Tata Sons and Tata Motors Chairman Ratan N Tata, said, ''We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business.
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 added that the aim was to support their growth, while holding true to Tata's principles of allowing the management and employees to bring their experience and expertise to bear on the growth of the business.
As part of the transaction, Ford will continue to supply Jaguar Land Rover for differing periods with powertrains, stampings and other vehicle components, in addition to a variety of technologies, such as environmental and platform technologies.
Ford also has committed to provide engineering support, including research and development, plus information technology, accounting and other services Ford Motor Company President and CEO 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 Company that delivers profitable growth for all.'' In addition, Ford Motor Credit Company will provide financing for Jaguar and Land Rover dealers and customers during a transitional period, which can vary by market, of up to 12 months.
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