| Takeover deals | Jaguar & Land Rover sold to Tata Motors |

The deal for Tata to buy Jaguar and Land Rover has been an open secret for some time, but it has now been officially announced by Ford from its Dearborn, USA headquarters. Tata is paying £1.15 billion in cash for the two British car makers and will assume control by the end of June.

Ford has sold the two companies for around half of what it paid for them in early 2000. The sale follows Ford's sell-off of Aston Martin last year to a British-led consortium for £550 million to help the American car giant's ailing fortunes.

Alan Mulally, president and CEO of Ford, said: "Jaguar and Land Rover are terrific brands and we're confident that they are leaving our fold with the products, plan and team to continue to thrive under Tata's stewardship." He added that it is now time for Ford to concentrate on making itself profitable.

Ratan Tata, chairman of Tata Motors, commented: "We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our business. We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, and keeping their identities intact. We aim to support their growth."

Speaking on behalf of Jaguar and Land Rover, Geoff Polites said: "We're very pleased that Ford and Tata have come to an agreement. We feel confident we can forge a strong working relationship with our new parent company and look forward to a bright and successful future."

Tata is rumoured to be keen for Jaguar to add a small sports car to its range and for the Land Rover LRX concept car to become a production reality. Ford will continue to supply engines and other components to both British companies for the foreseeable future and has guaranteed financing for dealers for the next 12 months. It has also contributed £300 million to the pension fund of Jaguar and Land Rover's 16,000-strong work force.

Alisdair Suttie - 26 Mar 2008