Product details

Ford Motors Limited, one of the world's leading automobile manufacturers had put its luxury brands Jaguar and Land Rover, on the block. Tata Group company's automotive major Tata Motors Limited (TML) was one of the top bidders. In March 2008, TML won the bid for $2.3 billion. As per the deal, Ford committed to provide Jaguar and Land Rover with vehicle components and access to engineering and technological support to TML. Apart from funding aspects of the acquisition, analysts wondered how TML would manage these luxury brands as it was a well-known player in the low to mid-end segments. The deal pushed TML into a segment where it had less experience. The case helps in discussing the financial implications of the deal on the balance sheet of TML and the opportunities and challenges for it, post acquisition.