Tata Motors borrows $3 bn to buy Jaguar, Land Rover

March 19th, 2008 - 12:04 am ICT by admin  

London, March 18 (IANS) Tata Motors has secured a $3 billion loan from Citigroup and J.P. Morgan Chase to finance its intended purchase of the British marques Jaguar and Land Rover from their American owner Ford Motors, according to media reports Tuesday. The Wall Street Journal (WSJ) quoted a person familiar with the deal as saying Tata had secured a one-year bridging loan from the two banks.

Tata Motors are thought to have made an offer of around $2 billion to purchase the two luxury brands, and the deal is now expected to go through sometime next week, the paper said.

Other reports said money from the loan would also be used to finance the production of the recently launched Tata Nano, the world’s cheapest car.

The WSJ said the deal could be signed as soon as next Monday.

But because Ford employees are off work Monday, a formal announcement could be made Tuesday or later in the week, the paper quoted “people familiar with the situation” as saying.

However, earlier reports in The Times newspaper had said the deal would be signed sometime around Easter, which falls on March 23 this year.

Ford said in a recent government filing that it expects the sale to be finalised with regulators sometime during the second quarter.

A Ford spokesman said the company is “pleased with the significant progress” in the negotiations and that the two sides remain “on track” to reach a deal early this year. “There are no major roadblocks,” the spokesman added.

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