Tata Borrows $3b for Jaguar/Land Rover Purchase

tata borrows 3b for jaguar land rover purchase

Indian automaker Tata has moved one step closer to purchasing Jaguar and Land Rover. Reuters reports that the Indian automaker has secured a $3b one-year bridge loan from Citigroup and JPMorgan. The usual "sources familiar with the deal" say the loan is to "help finance a potential purchase" of the luxury brands from Ford. The principals declined to comment, but media reports from India say Tata is expected to agree to the purchase at the end of the month. (And Francisco Franco is still dead.) Tata may still balk– especially as Standard & Poors is reviewing Tata for a possible downgrade in the light of the potential increase in the company's debt load. If the sale goes through and FoMoCo's cash flow goes critical, Volvo and their 33.9 percent share of Mazda could be next.

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  • Incitatus Incitatus on Mar 18, 2008

    up is down and down is up.. sounds like the end of the world ..

  • Frontline Frontline on Mar 18, 2008

    Picture this: A super basic de-contented, small diesel ,4 wheel drive, somewhat Nanoish Land Rover w/ flat paint. Something that the US should have had all along.

  • HalfMast HalfMast on Mar 19, 2008

    I also thought Ford had 51% of Mazda. While I understand the need for cash leading to the Jag and LR sales, I think Ford would be uterly stupid to dump Mazda (and to a degree, Volvo). Both have significant positives in the design arena, with the Mazda6 being the base for the Fusion and Volvo having heavy input in the new Taurus. Although neither have been super stars, they've gone a long way to giving design and reliability credibility to FoMoCo. The Edge and CX-9 synergy is another bright spot. Frankly, I think Ford should go a step further and bill Mazda as their "performance" brand (as Pontiac is to Chevy).

  • Frank Williams Frank Williams on Mar 19, 2008

    Lumbergh21 I guess I missed it, but I thought Ford owned 50% or 51% of Mazda not 33.9%

    Ford owns controlling interest in Mazda as the largest stockholder, but the not the majority interest.

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