Tata acquires Jaguar, Land Rover

Tata Motors Wednesday entered into a definitive agreement with Ford Motor Company for the purchase of Jaguar Land Rover for around US $2.3 billion. This comprises brands, plants and Intellectual Property Rights. The transfer of ownership to Tata Motors is expected to close by the end of the next quarter. At closing, Ford will then contribute up to $600 million to the Jaguar Land Rover pension plans. . As part of the transaction, Ford will continue to supply Jaguar Land Rover for differing periods with powertrains, stampings and other vehicle components, in addition to a variety of technologies, such as environmental and platform technologies. Ford also has committed to provide engineering support, including research and development, plus information technology, accounting and other services. In addition, Ford Motor Credit Company will provide financing for Jaguar and Land Rover dealers and customers during a transitional period, which can vary by market, of up to 12 months. The parties believe these arrangements will support Jaguar Land Rover's current product plans, while providing Jaguar and Land Rover with the freedom to develop its own stand-alone capabilities in the future that will best serve its premium manufacturer requirements. Jaguar Land Rover’s employees, trades unions and the UK government have been kept informed of developments as the sale process progressed and have indicated their support for the agreement.

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