Tata Chem raises Rs 3,400 cr for acquiring US based General Chemical Industrial Products for $1 billion (about Rs 4,000 crore) early this year. The acquisition of General Chemical will make Tata Chemicals the second largest maker of soda ash in the world. Tata Chemicals would raise $850 million (about Rs 3,400 crore) in debt to fund the acquisitions.
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After nine months of negotiation, Tata Motors has finally signed a deal to buy luxury brands Jaguar and Land Rover (JLR) from Ford Motor for $2.3 billion in cash, the largest acquisition by an Indian company in the automobile business. The purchase price is less than half what Ford paid ($2.5 billion each) to acquire the two brands. Ford bought Jaguar in 1989 and Land Rover from BMW in 2000.
There are about 16000 employees on rolls of JLR. Hence, Ford will contribute about US$ 600 million towards Jaguar Land Rover pension plans. The definite agreement brings brands, plants and Intellectual property rights of JLR. The agreement provides for Ford to continue to supply Jaguar Land Rover for differing periods with powertrains, stampings and other vehicle components.
Ford will also supply a variety of technologies, such as environmental and platform technologies. It has committed to provide engineering support, including research and development, plus information technology, accounting and other services. As a transition arrangement, Ford Motor Credit Company will continue to provide financing for Jaguar and Land Rover dealers and customers during a transitional period, which can vary by market, of up to 12 months.
The deal is a fulfillment of Mr Tata’s personal vision and is intended to catapult Tata Motors into the global big league of auto majors. It will also reinforce the global perception of India Inc as a leader in international business, and not just in IT. The acquisition also marks Tata Motor’s leap forward into the global higher end luxury car segment.
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Religare Enterprises, a Ranbaxy-promoted group company, is looking at buying yet another London-based broking firm, for around Rs 700 crore. However the name of the firm could not be established at present. This move comes close on the heels of Religare’s 100 per cent acquisition of London-based investment banking firm Hichens, Harrison & Co for about Rs 400 crore through its subsidiary Religare Capital Markets Ltd. According to a company official, Hichens acquisition is the first in the series of several other ventures in the pipeline.
Indian brokerages have been buying assets overseas to acquire technology, learn new business practices and expand their reach. This acquisition will give Religare firm foothold in the extremely competitive international equity capital markets and will increase the scope of its institutional broking business.
Earlier, Kochi-based Geojit Securities had acquired a significant stake in Aloula, a Saudi Arabia-based broking firm, and had also set up a joint venture company in Dubai in which it holds 49 per cent. The acquisitions are expected to gather pace with cheaper available assets overseas and will make it easier to secure private equity funds and offer share placements overseas.
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