Ford Indicate Tata Close To Acquisition

Motoring giant Ford has today announced that Indian manufacturer Tata has come even closer to acquiring its ‘for sale’ divisions of Land Rover and Jaguar, after talks moved into more advanced stages over the future of the two motoring brands.

After the company announced last June that it intended to sell off the two brands, competition between bidders has been fierce, with several emerging as strong contenders including One Equity, a subsidiary of investment bank JP Morgan and of course, Tata Motors, a major Indian car manufacturer.

Whilst negotiations have been today described as at an advanced stage, there is still no firm agreement between Ford and Tata that they are to be considered exclusively, leaving the path open for other bidders to still acquire Land Rover and Jaguar from their current US owners.

It is also thought that Ford had been in discussions with equity groups Blackstone and Apollo over potential sales deals, despite the fact that the company has today indicated Tata to be its preferred bidder at this stage, which could lead to a quick sale across the coming quarter.

Tata, with a strong marketshare in the Indian car market has been looking to expand into the Western car markets, with a view to strengthening global performance. With the acquisition of Jaguar and Land Rover, it is thought that Tata could achieve its medium term aims of expansion, allowing it to increase revenues and global market share.

“There is still considerable work to do and while no final decision has been made, we will proceed with further substantive discussions with Tata Motors over the forthcoming weeks,” said a spokesperson from Ford today.

“We are pleased by the progress in the discussions to date and very positive about the prospects of this business going forward”.

It remains to be seen whether there will be a push from the other bidders in consideration to sway the tide, or whether Ford and Tata will progress towards signing on the dotted line.

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