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Icons on sale: Tatas seen closing in on Land Rover and Jaguar
Though the official word on the Land Rover and Jaguar sale has been mum, speculation mounted on Thursday that Tata Motors has indeed acquired these iconic brands. Another set of stories indicated that Tata Motors has emerged as the front runner for both brands. On their part, executives at Tata Motors declined to comment.
On the back of this speculation, the Tata Motors scrip rose 5%. It finally ended the day to close at Rs 730.
Spokespersons for Ford said they have established contact with interested parties and are evaluating the bids. "But these are very preliminary discussions and we will not be publicly announcing any of the names in the fray," said John Gardiner of Ford.
Prof Garel Rhys, of the Centre for Automotive Industry Research at the University of Cardiff, told a UK-based newspaper that Tata Motors is one of the few automotive companies with the firepower to outbid cash rich private equity investors in the fray.
"It is an incredibly efficient operation, much more profitable than Ford. They are the leading heavy truck builders in Asia and one of the biggest in the world." If the Tatas are successful, it would have feelings of stewardship for old British assets, Prof Rhys added.
If Tata Motors manages to pull off this deal, it will take the company to a different league altogether in the global automotive market because while these two brands, though struggling financially, are prestigious brands.
Analysts observing the sector added that the Tatas stands a stronger chance of acquiring the brands as compared to private equity funds as Ford would want the least disruption on all fronts. This is because private equity funds would be looking for quick returns, cutting jobs, closing down factories, and will end up aggravating unions.
Land Rovers are made at Solihull in the West Midlands and Jaguars are manufactured at Castle Bromwich in the West Midlands, with the two companies also sharing a plant at Halewood on Merseyside. It has employee strength of 16,000 people .
Ford hired advisors to sell Jaguar and Land Rover, part of its Premier Automotive Group, to reap as much as $1.5 billion, according to estimates.
On the back of this speculation, the Tata Motors scrip rose 5%. It finally ended the day to close at Rs 730.
Spokespersons for Ford said they have established contact with interested parties and are evaluating the bids. "But these are very preliminary discussions and we will not be publicly announcing any of the names in the fray," said John Gardiner of Ford.
Prof Garel Rhys, of the Centre for Automotive Industry Research at the University of Cardiff, told a UK-based newspaper that Tata Motors is one of the few automotive companies with the firepower to outbid cash rich private equity investors in the fray.
"It is an incredibly efficient operation, much more profitable than Ford. They are the leading heavy truck builders in Asia and one of the biggest in the world." If the Tatas are successful, it would have feelings of stewardship for old British assets, Prof Rhys added.
If Tata Motors manages to pull off this deal, it will take the company to a different league altogether in the global automotive market because while these two brands, though struggling financially, are prestigious brands.
Analysts observing the sector added that the Tatas stands a stronger chance of acquiring the brands as compared to private equity funds as Ford would want the least disruption on all fronts. This is because private equity funds would be looking for quick returns, cutting jobs, closing down factories, and will end up aggravating unions.
Land Rovers are made at Solihull in the West Midlands and Jaguars are manufactured at Castle Bromwich in the West Midlands, with the two companies also sharing a plant at Halewood on Merseyside. It has employee strength of 16,000 people .
Ford hired advisors to sell Jaguar and Land Rover, part of its Premier Automotive Group, to reap as much as $1.5 billion, according to estimates.
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