Tata gets Jaguar: Ford to make announcement
It’s not been officially announced, but Dow Jones London Bureau is reporting that Ford has selected Tata as the successful bidder for Jaguar and Land Rover, and that the deal will announced within the next two weeks.
If so, Tata, which is an Indian conglomerate that manufactures both cars and trucks, will have beaten out another Indian carmaker, Mahindra, as well as One Equity, a U.S. equity fund.
The purchase prices is rumored to be about $2 billion, which is about $500 million more than Tata had publicly stated that it had reserved for the purchase. It is expected that Tata will be able to pay the full amount without resorting to any outside financing.
Specific details, of course, have not been announced either. It can be expected, however, that the purchase will include an engine deal for Ford, as well as some commitments by Ford to production of future motors. Jaguar does not build its own motors. Rather, they are built for the company by Ford and the facilities for that production are not owned by Jaguar and are not part of the sale of the company.