Tata Motors M&A

Tata Motors Limited is a multinational corporation headquartered in Mumbai,

India. Part of the Tata Group, it was formerly known as TELCO (TATA
Engineering and Locomotive Company). Tata Motors has consolidated
revenue of USD 16 billion after the acquisition of British automotive brands
Jaguar and Land Rover in 2008.

Established in 1945, when the company began manufacturing locomotives,

the company manufactured its first commercial vehicle in 1954 in
collaboration with Daimler-Benz AG, which ended in 1969.

Hispano Carrocera SA, based in Zaragoza, Aragon, Spain, is one of the

largest manufacturers of bus and coach cabins in Europe. It is a fully owned
subsidiary of India's Tata Motors. Tata Motors acquired control of the
company in 2005, after purchasing a 21% stake in the company. In 2009, it
acquired the remaining 79% for an undisclosed amount.
They have industrial facilities in 2 countries and have had international
commercial relations with more than 50 countries in our history.

Joint ventures
Tata Motors has formed a 51:49 joint venture in bus body building with
Marcopolo of Brazil. This joint venture is to manufacture and assemble fully-
built buses and coaches targeted at developing mass rapid transportation
systems. The joint venture will absorb technology and expertise in chassis
and aggregates from Tata Motors, and Marcopolo will provide know-how in
processes and systems for bodybuilding and bus body design. Tata and
Marcopolo have launched a low-floor city bus which is widely used by Delhi,
Mumbai and Bangalore Transport Corporations.

Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s
diesel engine technology. Tata Motors sells Fiat cars in India and is looking to
extend its relationship with Fiat to other segments. Fiat's first body-on frame
pickup will have the same styling as Tata Xenon and is to be named Fiat
Terra.

After the acquisition of the British Jaguar Land Rover (JLR) business, which
also includes the Daimler, Lanchester and Rover brands, Tata Motors became
a major player in the international automobile market. On 27 March 2008,
Tata Motors reached an agreement with Ford to purchase their Jaguar Land
Rover operations for US$2 billion.

There have been some significant outbound acquisitions by Indian companies

in the calendar year 2008, of which a major deal was of Tata Motors buying
the luxury brands Jaguar and Land Rover (JLR) from Ford Motor for US$ 2.3
billion in cash, the largest acquisition by an Indian company in automobile
business. The purchase price was less than half of what Ford paid ($2.5 billion
each) to acquire the two brands. Ford had brought Jaguar in 1989 and Land
Rover from BMW in 2000. Tata Motors have raised US$ 3 billion (Rs 12,000
crore) through bridge finance for 15 months from a group of banks, including
JP Morgan, Citigroup and State Bank of India (SBI) to finance the deal. This
will be replaced by a combination of long-term debt and equity. Tata Motors
had appointed SBI as the sole lead manager to raise $3 billion for funding the
acquisition of Jaguar and other auto brands.

Jaguar is a manufacturer of mainly luxury passenger cars, which was acquired

by Ford in 1989. Land Rover is a manufacturer of mainly sports utility
vehicles (SUVs), which was acquired by Ford from BMW in 2000.
By Tina Elizabeth
Yuben Joseph