The Jaguar and Land Rover deal has finally been wrapped and Tata Motors has completed all formalities to acquire the iconic British brands from Ford Motors. The deal is worth $ 2.3 billion.
Tata Motors has been able to pull of the deal despite tight credit conditions. The transaction includes transfer of intellectual property rights, manufacturing plants, two advanced design centers and a worldwide network of sales companies.
Tata Motors raised the necessary funds through a consortium of 15 banks in domestic and international arenas. Meanwhile, the post of JLR CEO has been taken by Mr. David Smiths, who was so far the acting CEO of the company. Mr. Smith has been associated with JLR for the past 25 years. He was the Director of Finance and business strategy at Premier Automotive and Ford of Europe.
Tata Motors has taken a bridge loan of 3 billion from 8 banks. The bridge loan covers the 2.3 billion acquisition along with other expenditures.
The handing over ceremony was held at the Gaydon headquarters of JLR in UK. Those present there were chairman of Tata Sons and Tata Motors Mr. Ratan Tata, executive vice-president and CFO Mr. Don Leclair and executive vice-president of Ford Motors Mr. Lewis Booth.
The new owner of JLR Mr. Ratan Tata said, “The Indian company will extend all support to the JLR team and help them to become competitive in the luxury car market. The two iconic British brands Jaguar and Land Rover will continue to retain their distinctive identities. They are free to pursue their respective business plans as before.
Based on the agreement, Ford Motors will continue to provide support to JLR dealers and customers for some more time. In the meantime, Tata Motors is in advanced phase of negotiations with leading car financers in Europe, UK and US to support the marketing of Jaguar and Land Rover.