Mumbai: Tata Motors is close to buy the two luxury British brands of Ford at a price of little over $ 2 billion. Tata Motors impending buy of the two iconic brands marks another significant step by the tea-to-truck conglomerate towards globalisation of its sprawling business empire. The Indian automobile maker has been able to get the major trade unions of Jaguar and Land Rover to throw their weight behind the take over. The union has supported the Tatas'' bid for the two brands throughout the talks had put forth some demands, including non-retrenchment of any worker and continuation of supply of engines by Ford after the Tata takeover. The Tatas, on their part, are expected to pledge to continue purchasing engines for the two brands from Ford. Further, the Indian company will give its commitment to retain the present workforce of the two brands.
These commitments are hoped to bring the trade unions on board for the sale, as these were the major demands of the 16,000-strong labour force of Jaguar and Land Rover. Sources say that the final pact will not include Ford retaining a minor stake in the two brands, as was speculated in the foreign media earlier. Even as it was talking with the US carmaker, Tata Motors has been finalising it financing strategy for the acquisition. Tata Motors buy of Jaguar and Land Rover will give it a wide spectrum of product portfolio within the automotive space.
These commitments are hoped to bring the trade unions on board for the sale, as these were the major demands of the 16,000-strong labour force of Jaguar and Land Rover. Sources say that the final pact will not include Ford retaining a minor stake in the two brands, as was speculated in the foreign media earlier. Even as it was talking with the US carmaker, Tata Motors has been finalising it financing strategy for the acquisition. Tata Motors buy of Jaguar and Land Rover will give it a wide spectrum of product portfolio within the automotive space.
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