Tata Motors Bid for Jaguar and Land Rover | Business Strategy Case Studies

Details

Case Code : CLBS091
Publication date : 2009
Subject : Business Strategy
Industry : -
Length : 02 Pages
Price : Rs. 100

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Key words:

Tata Motors, Jaguar, Land Rover, Ford Motor Company, Ford, Lincoln, Mercury, Aston Martin, Volvo, Mazda, confidentiality agreement, Corus Group PLC, Mahindra & Mahindra, Cerebrus, Ripplewood Holdings, marquee brands, acquisition, BMW, Audi

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Abstract:

This business update discusses about Tata Motors bid to acquire Ford Motor Company's Jaguar and Land Rover brands. The deal was estimated at US$ 1.5 billion. Ford planned to sell the Jaguar and Land Rover brands as they contributed to a major chunk of losses in Ford Motors. In addition to Tata Motors, other companies like Mahindra & Mahindra and private equity firms like Cerebrus and Ripplewood Holdings were also hoping to acquire Land Rover and Jaguar. However, some analysts raised doubts over Tata Motors capabilities to handle these brands, which were in the league of BMW and Audi.

Introduction

On June 11, 2007, Tata Motors, India's largest automobile manufacturer, expressed its interest to acquire the premium European car brands Jaguar and Land Rover brands owned by Ford Motor Company (Ford Motors).

The deal if successful was expected to be one of India's biggest overseas takeover bids in the automotive sector. The deal was estimated at US$ 1.5 billion. It was reported that Tata Motors may finance the deal along with Fiat S.p.A (Fiat) or tie-up with an equity player. However, some analysts indicated that Tata Motors was capable of financing the acquisition as it had a cash pile of Rs. 60 billion and free cash of over Rs. 10 billion for the financial year ended March 31, 2007...

Tata Motors Bid for Jaguar and Land Rover*