India’s frontrunner corporate brand, Tata Motors, the wing of Tata Inc. has again done the remarkable job and showed lots of courage by acquiring two global prestigious brands that was proving a ‘panic’ deal for US elite car company ‘Ford Motors Co.’
Tata Motors on Wednesday evening officially announced to purchase the two expensive brands ‘Jaguar’ and ‘Land Rover’ from Ford Motors Co. at hefty cost of USD 2.3-billion; out of which $600-million would be given to employee’s of purchased brands as the compensation and pension and the remaining only USD 1.7-billion would go to Ford’s account, which would be less than half of the collective purchasing price of these brands.
Ford has purchased the Jaguar brand from its original British manufacturing company at $2.5-billion in 1989 while it had purchased Land Rover at $2.7-billion in 1990. Both these brands were going in the heavy loss and last year Ford, which was already facing the ‘financial’ problem, had announced to ‘Focus’ on its original brands.
Jaguar is renowned for its ‘sporty’ looks while Land Rover is famous for its ‘Luxury’.
Earlier, Tata Motors and Mahindra & Mahindra were in the race with some other foreign companies, but at last, it’s only Tata that could manage to finalise the deal.
Tata has officially announced that the deal could reach to the climax within 6-8 weeks as it is still in unapproved form and the regulators would finalise it by the end of June and incorporates brands, factories and intellectual property rights. However, company (Tata) has decided to preserve the heritage and competitiveness of both these brands and also the fate of ‘brands’ employees.
For purchasing these brands, Tata has announced to arrange the bridge loan by the end of this year, whereas both these cars would begin to run on the Indian roads under the Tata’s roof with its own ‘logo’ from the next financial year.
By purchasing these brands, Tata Motors has added two precious jewels in its kit and now it would have a wide range of the cars, from Nano, the world’s cheapest car and two imperials ‘Jaguar’ and ‘Land Rover’.
Nano is Tata’s origin ‘wonder’ car and currently in the pipeline. It is expected to run on the road by the end of this year. The expected price of this car would be around USD 2,500.
Tata steel, a wing of Tata Sons has made three major acquisitions worth some $13 billion in the past few years including the major ‘Corus’ deal. Now, Tata group with the total asset of USD 28.8 have registered 98 companies in its fold by taking-over two British automobile marquees.
The shares of the Tata Motors has slipped below 3% in National Stock Exchange while more than 4% in Bombay Stock Exchange since 2:30 pm from yesterday’s closing price of Rs.678.75 and Rs.679.40 respectively similar as the share of Tata Steel had slid after finalising the ‘Corus’ deal.
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