Mumbai, Mar 26 (UNI) After several months of negotiations, India's largest auto manufacturer Tata Motors today finalised the deal of purchasing Jaguar and Land Rover for USD 2.3 billion.
Tata group owned passenger and commercial vehicle manufacturing company has entered into a definitive agreement with the Ford Motor Company for the purchase of Jaguar Land Rover, comprising brands, plants and intellectual property rights, the group confirmed to the BSE.
''The total amount to be paid in cash by Tata Motors for Jaguar Land Rover upon closing will be approximately USD 2.3 billion. At closing, Ford will contribute up to approximately USD 600 million to the Jaguar Land Rover pension plans,'' the group said, adding that the transfer of ownership to Tata Motors is expected to close by the end of the next quarter, subject to applicable regulatory approvals.
Commenting on the agreement, Tata Group 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. 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.'' As part of the transaction, Ford will continue to supply Jaguar and 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 has also committed to provide engineering support, including research and development, plus information technology, accounting and other services, Mr Tata said.
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.
The parties believe these arrangements will support Jaguar and Land Rover's current product plans, while providing Jaguar and Land Rover with the freedom to develop its own stand-alone capabilities in the future that will best serve its premium manufacturer requirements.
However, the parties do not anticipate any significant changes to Jaguar and Land Rover employees' terms of employment on completion, the group added.
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