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Tata to pay £1.25bn for Jaguar and Land Rover
By Yoann Besnard on 9 February 2008 | (0) Comments | Permalink
According to Economic Times of India, a deal will be concluded within two weeks and Tata Motors may pay £1.25 billion for the two British brands.
The final price will depend on agreements on engine supply, component sourcing, financing and other support services for which Jaguar and Land Rover would have to continue depending on Ford.
"The Tatas are in talks with Ford on other factors like the total pension liability. In case the company is able to strike a long term deal for engine supply, the pricing could go up," said a senior consultant source.
Ford is getting upset by Fiat keen interest in sharing technology between Jaguar and Alfa Romeo and an insider said Ford is "unlikely to conclude any agreement not in its interest and that would not necessarily include a third party".
Fiat then said it has "not had discussions ... with Tata regarding this potential transaction or its participation in it." On Monday, Tata Motors issued a statement clarifying that it "has had no discussions with Fiat on deployment of technologies developed by Jaguar and Land Rover", the Economic Times said.