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Land Rover & Jaguar Deal to Mark Indian Auto Sector’s First Billion Dollar Acquisition |
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Written by News watch
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Saturday, 22 December 2007 |
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Jaguar and Land Rover shall be owned for an estimated price
of approximately $2 billion, which features Tata Motors Ltd and Mahindra &
Mahindra Ltd. Tata Motors that has been facing critical reviews concerning
quality and reliability with its passenger cars ‘Indica', the small car that it
marketed badged as CityRover as per tie-up with British automaker MG Rover in
Europe, with the two cult luxury brands Land Rover and Jaguar in its armory
will see itself take the first steps in to the un-explored premium segment and
graduate to state-of-the-art engineering expertise from a combined workforce of
20,000.
The other reason why Jaguar-Land Rover deal will be
significant is that it will further reinforce the prominence of the Indo-U.K.
merger & acquisitions deal activity which has already seen the country's
two of the largest deals - the acquisition of Hutchison Essar Ltd India's
second largest GSM mobile service provider by the U.K.'s Vodafone Group Plc and
the acquisition of the U.K.'s largest steel maker Corus Group Plc by India's
Tata Steel Ltd.
Tata Group has been active in the U.K. market for long. The group had
previously acquired U.K.
's top steel maker Corus Group Plc after intense rounds of auction proceedings
with rival Brazilian steel company, Companhia Siderurgica Nacional (CSN). Prior
to that, the group had acquired U.K.-based Tetley Group, then the world's
largest manufacturer of tea, for $407 million in February 2000. The group has
already spent more than $15 billion to fulfill its inorganic growth strategies
and the acquisition of Land Rover and Jaguar will likely be the second most
expensive buy for the group after Corus.
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Land Rover & Jaguar - The Billion Dollar Acquisiti
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