By all accounts, the Tatas are one step away from getting the keys to iconic British brands Jaguar and Land Rover. Reports emanating from the British media indicate that an announcement naming Tatas as the new owners can be expected as early as Friday. This comes on the back of reports that the Indian conglomerate has submitted a $2.05 billion bid for the brands, a little higher than the $1.9 billion bid by Mahindra & Mahindra.
Sources close to the development indicated that senior Tata officials are already in the UK to iron out details before a public announcement. Tata group spokespersons declined to comment. “At this stage, the deal could go in any direction and we really don't have anything to say,” an official told TOI.
However, the British press, quoting sources at Land Rover, reported, “It's definitely Tata. There is one final meeting and as long as there are no last-minute hitches, which are not expected, an announcement will be made on Friday.”
If the deal goes through, it will mark the group's second big-ticket buy in 2007 after it won Anglo-Dutch steelmaker Corus in January this year.
Interestingly, in 2000, Ford paid £1.8 billion to buy Land Rover, known to build some of the toughest and safest sports utility vehicles on the planet. Jaguar, which boasts of ultra-luxury sedans and sports coupes, joined the Ford family in 1989 after a $2.3-billion deal.
While Land Rover has done reasonably well in the recent past, Jaguar has continued to bleed. After selling off Aston Martin in June, Ford sent out feelers to the automotive community that it was willing to sell Jaguar and Land Rover.
Labour union leaders at Jaguar and Land Rover have welcomed news that the Tatas are frontrunners for the brand.
A union spokesperson said, “We cautiously welcome this development, though the devil will be in the detail. We think the Tata bid is in the best interests of our members. They come from a manufacturing background, and the experience of other people they have taken over has been good. They allow the management to manage and are investing in it. They are cash-rich and they can afford the price, as well as invest in the future.”
