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Ford Announces Agreement To Sell Jaguar and Land Rover

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DEARBORN, Mich., March 26, 2008 – Ford Motor Company [NYSE: F] announced today that it has entered into a definitive agreement to sell its Jaguar Land Rover operations to Tata Motors.

The transaction is the culmination of Ford’s decision last August to explore strategic options for the Jaguar Land Rover business, as the company accelerates its focus on its core Ford brand and “One Ford” global transformation.

The sale is expected to close by the end of the next quarter and is subject to customary closing conditions, including receipt of applicable regulatory approvals.

Continue to read: Ford Announces Agreement To Sell Jaguar and Land Rover

Three bidders left for Jaguar & Land Rover

The bidders include American buyout firm One Equity Partners as well as Indian manufacturers Tata Motors and Mahindra & Mahindra (M&M). The latter is said to be working in conjunction with another equity firm, America’s Apollo.
M&M originally pulled out of the bidding because it was only interested in purchasing Land Rover and not the combined companies, reports Automotive News. It rejoined the auction after partnering with Apollo. If successful, M&M will get control of Land Rover and Jaguar would go to Apollo.

The bidders will be meeting with trade unions and the UK government in the following weeks in an attempt to quell fears of massive job cuts. A spokesman for Ford said and final agreement won’t be made until early next year at the earliest.
The most recent valuation for both carmakers is $1.5 billion, far short of the rumored $6 billion Ford was hoping for.

source: MotorAuthority