Tata Motors, India’s biggest automobile company, and tractor and utility vehicle major Mahindra & Mahindra are understood to be exploring the possibility of bidding for Jaguar and Land Rover, owned by the Ford Motor Company. The deal size is being estimated at about $1.5 billion (£735 million) for the two-storied brands that epitomise the British automobile industry.
Industry analysts said that the Tatas may finance the bid in conjunction with Fiat, which has the Ferrari and Alfa Romeo brands in its portfolio. The two automobile majors recently entered into an alliance to jointly market and manufacture Fiat models in India.
According to sources in the auto industry, the bids are due soon and both Indian players see considerable value in these cult luxe marques. However no final decision has been made by either player. Sources also say that Tata Motors may also be looking to team up with private equity players for the deal, apart from the possibility of bidding with Fiat. Indeed the Tata-Fiat combine could even team up with a private equity player, though there is no confirmation of this.
As for M&M, its real interest is in Land Rover, say analysts, but since the two brands are being offered as a package deal, it is looking at a combined bid. Although there is no confirmation on the size of the deal, international media is pegging it at around $1.5 billion, significantly more than the $848 million that the Dearborn (Michigan)-based Ford got for its other British bespoke brand Aston Martin this March.
(Source: Economic Times )
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment