Jaguar, Land Rover deal to cost Tata Motors $2 bn

The final cost of the Jaguar-Land Rover deal may go above the $ 2-billion mark. According to sources in the auto industry, Tata Motors may end up forking out between $2-2.5 billion for the two British brands depending upon the kind of engine supply and sourcing arrangements it can get Ford to commit to. The final bid amount could also include JLR debt. Sources say the deal will be concluded in the next 10-15 days.

When contacted Ford spokesman John Gardiner said: “We cannot say anything more than that the discussions are ongoing and good progress is being made.” On Monday, Tata Motors released a statement saying it hopes the two “parties can reach an agreement in the forthcoming weeks”. Read More>>

Tata Steel-Corus deal on track

Exactly one year ago India Inc witnessed the biggest ever acquisition. Yes, we are talking about Tata Steel’s acquisition of Corus group. The stock market didn’t respond positively with the apprehension among investors being that the deal may not turn out to investor’s interest. The stock price fell by around 7% in 15 days after Tata Steel won the bid ousting CSN.

But after one year, the sceptics have been proved wrong. Corus’ finances are improving and Tata Steel is now India’s largest private sector company with consolidated net sales of Rs 63,587 crore in the first half of FY08. The stock market has also recognised this. The stock price more than doubled until the stock market crash kicked off on January 10. Tata Steel was, in fact, the best performing company in the Tata Group last year.

Tata Steel has taken many steps to make the best out of this deal. Its acquisition of iron ore and coking coal mines in Mozambique and Ivory Coast can feed the Corus plants for around 10 years and 20 years, respectively. Recently, it took majority control of a limestone mine in Oman. These captive sources of raw material are expected to reduce Corus’ operating cost giving a big boost to Tata Steel’s profits on a consolidated basis. read full story

Tata Chemicals buys US firm for $1 bn

The Tata group on Thursday celebrated the first anniversary of its acquisition of the Anglo-Dutch steel giant Corus, the biggest foreign takeover by any Indian company so far, by announcing that its chemicals outfit, Tata Chemicals (TCL), has entered into a definitive agreement to buy the soda ash business of the US-based General Industrial Products for $1 billion.

Post-acquisition, TCL will become the world’s second-largest soda ash maker with a combined capacity of 5.5 million tonne per annum (mtpa) and 14% share of the global market. Now, Tata Chemicals enjoys 8% share of the global market with capacity of 3 mtpa. Harbinger Capital Partners, majority stakeholder of General Industrial Products, had put its soda ash subsidiary, General Chemical (Soda Ash) Partners, on the block.

Homi R Khusrokhan, managing director, TCL, said: “It’s an auspicious day for the group. Exactly a year ago, the Tata Group chairman Ratan Tata announced the acquisition of Corus. I was sitting in the audience,” he recalled while announcing the deal on Thursday. The $12.9-billion Corus acquisition catapulted Tata Steel to the world’s sixth-largest steel company from its previous ranking of 56. read full story