India Tata even swallow Land Rover Jaguar this business logic as to which

Buyer

Tata companies

India's Tata Group, Tata Motors announced on 26 October to 23 million cash acquisition of United States Ford's Jaguar and Land Rover two large luxury car brand. Market analysts believe that although the acquisition amount in the automobile industry merger cases are relatively small, but by an Asian company included two major European traditional luxury car brand in the market.

In recent years, with India's rapid economic development, not only is the Tata Group in India, many enterprises are significantly accelerates the speed of overseas mergers and acquisitions. As far as India Chamber of commerce statistics, over the past 8 years India Company has acquired a total of more than 300 overseas enterprises, the total value of up to billions of dollars.

Purchase intent by frequent acquisitions of foreign enterprises overseas expansion plans

Seller

Ford

Sell:

Ford two years more than 150 million operating loss

Also required approval

The acquisition is expected to be completed in the second quarter

According to the agreements reached between the parties, TML will billion cash acquisition of "Land Rover" and "Jaguar" 100 per cent stake in Ford agreed to these two major brand of corporate pension plans provide approximately 6 billion u.s. dollars of funds. The acquisition also require approval by industry regulators, is expected in the second quarter of this year.

Tata Motors is India's first bus and truck manufacturer, is the third largest car manufacturer in the country. Since the beginning of this year, Tata Motors began negotiations with the Ford Motor Company acquired "Land Rover" and "Jaguar". India the automobile magazine senior editor Holma Zdenek · Sorabjee believes that the acquisition will bring for TML, including numerous development opportunities to the global market faster.

Brand change owners, Ford will for some time continue to "Land Rover" and "Jaguar," the supply of engine, transmission and stamping equipment parts. In this way, Tata Motors in automobile manufacturing-related technical level will be increased significantly.

"Tata acquired ' Land Rover ' and the ' Jaguar ' brand behaviour will make the world sit up and pay attention to India in the global automotive arena increasingly significant role. "Once considered purchasing the brand India Ma hengda automobile company heads Anand · Mahindra said.

Tata is India's largest private enterprise, in the last few years with frequent acquisitions of foreign enterprises overseas expansion plans.

Operating loss

Ford to sell Jaguar Land Rover reluctantly

Acquirer shanyaozhi, have been in the industry landscape limitless Ford has experienced due to build a "luxury car brand team" of the loss resulting from the pain. Media independent analysts quoted automotive Marein · Keller, in the words of the founder's grandson of Henry Ford · Ford II during his lifetime for European luxury car brand has very deep feelings, especially in the United Kingdom "Jaguar" brand.

Ford to 25 billion US dollars to purchase the "Jaguar", the former head of "Grand dreams". Since then, the Ford company putting in a lot of energy to operate "Jaguar" brand, make this a luxury brand with a bright future. After 1999, Ford in the European market for luxury brands to note on the cast, 1999 and 2000 acquisition of Sweden Woerwoqichegongsi's car business as well as the United Kingdom "Land Rover" brand. Coupled with the company in 1987 acquisition of "Aston · Martin" brand, Ford formed a "luxury brands team."

However, this "Deluxe brand team" and not really rewarding. Take the "Jaguar", for example, with "Jaguar" of 19 years, Ford investment funds difficult to estimate, but still did not make it profitable. 2006 and 2007, two years, the Ford business losses total more than $ 150 billion. In desperation, Ford will "Aston Martin" brand · sold, and the "Land Rover" and "Jaguar" to "sell" list.

Situation is grim

Two brands can profit

However, he won two major luxury brands nor as TML won consistent cheers.

France reported that two large luxury car brand franchisee, Tata Motors will become a market in an unusual role, that is, at the same time, the world's most low-end cars and luxury car brand. In January this year, the company introduced an estimated price of us $ 2500 new cars, known as the "minimum price" in the world.

Some analysts are questioning, Tata Motors, mainly the production of passenger cars, trucks and economical car, luxury car joined the company in the integration of production resources on questions of effectiveness. "Land Rover" and "Jaguar" is a family of India Company after the acquisition, the pursuit of luxury cars will regard them as European tradition of luxury car purchase is still a problem.

In addition, some analysts worry that the acquisition of the 23 million cash will give market value only 65 million TML bring the financial burden is not small. Although the luxury car is the automotive industry's most profitable, but in recent years the grim economic situation in the world have resulted in market demand for luxury cars continued to shrink, Tata Motors can both big brands on profits also was hit on the big question mark.