Tatas confirm interest in Jaguar, Land Rover

August 29, 2007

The Tatas have finally made it public that they are keen on taking over the Ford-owned Jaguar and Land Rover. Ratan Tata confirmed Tata's interest in the Jaguar and Land Rover brands, in an interview with CNN-IBN.

The take over would mean that the Tatas would consolidate their position on the global stage. The Indian auto market currently accounts for more than 90 per cent of Tata’s sales. A report quoting chairman Ratan Tata said that Jaguar and Land Rover could help expand Tata Motors unit's presence internationally. The take over is to up Tata Motors’ scale and give it a global reach.

Auto experts say that the recent upswing in the global financial markets has spurred the Tatas to bid for the two brands. Ford, which lost $12.7 billion in 2006, has been looking to sell its Jaguar and Land Rover units. The deal is now expected to close either in late 2007 or early 2008.

Reports say that at least three private equity groups-Cerberus Capital Management LLC, Ripplewood LLC and One Equity Partners LLC also have expressed an interest in Jaguar and Land Rover.

The Tata Group has its presence in almost all industry segments including automobiles, steel, and software. The group had recently made an impact in the global arena when group company Tata Steel invested $12 billion to acquire Britain-based Corus Steel.