Tata Motors' Acquisition of Jaguar and Land Rover
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Case Code: BSTR313 Case Length: 18 Pages Period: 2007-2008 Pub Date: 2009 Teaching Note: Available |
Price: Rs.500 Organization: Tata Motors, Jaguar, Land Rover, Ford Motors Industry: Automobiles Countries: India, UK, US Themes: Globalization, Standardization, Localization, Cultural issues |
Abstract Case Intro 1 Case Intro 2 Excerpts
Abstract
In June 2008, India-based Tata Motors Ltd. announced that it had completed the acquisition of the two iconic British brands - Jaguar and Land Rover (JLR) from the US-based Ford Motors for US$ 2.3 billion. Tata Motors stood to gain on several fronts from the deal. One, the acquisition would help the company acquire a global footprint and enter the high-end premier segment of the global automobile market. After the acquisition, Tata Motors would own the world's cheapest car - the US$ 2,500 Nano, and luxury marquees like the Jaguar and Land Rover. Though there was initial skepticism over an Indian company owning the luxury brands, ownership was not considered a major issue at all.
According to industry analysts, some of the issues that could trouble Tata Motors were economic slowdown in European and American markets, funding risks, currency risks etc.
Issues
- Understand the role of acquisition as a growth strategy
- Examine Tata Motors' inorganic growth strategy
- Examine the rationale behind Tata Motors' acquisition of Jaguar and Land Rover
- Understand the advantages and disadvantages of cross-border acquisitions
- Understand the need for growth through acquisitions in foreign countries
Contents
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Acquisition of British Icons
British Marques under Ford
Ford Sells JLR
The Deal
The Benefits
The Challenges
The Road Ahead
Exhibits
Keywords
Tata Motors, Ford, Jaguar, Land Rover, JLR, Merger Synergies, Acquisition, Acquisition Structure, Global automobile market, Sub-prime crisis, Automobile Brands, Cross Border Acquisition, Special Purpose Vehicle, Merger Integration, New Products Pipeline
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