BUSINESS

Ratan Tata defends JLR acquisition

Source:PTI
August 25, 2009 20:48 IST

Dismissing adverse comments on Jaguar and Land Rover (JLR) buy, Ratan Tata on Tuesday said the $2.3-billion acquisition of the iconic brands was 'worthwhile' though the subsequent financial crisis posed challenges.

"There has been a lot of commentary, expert opinion alluding that JLR acquisition was too high priced and endanger our well-being. I emphatically refute this. Yes, there could be challenges; it's not caused by the product or portfolio. It's caused by the global phenomenon," the Tata Motors chairman said at the company's Annual General Meeting in Mumbai.

"The acquisition was very much worthwhile. One or two years is not anything in the life of a corporation. What you see is not because of acquisition, but what followed it," he added.

Homegrown auto major Tata Motors had on June 2, 2008 completed the JLR acquisition from US automobile giant Ford Motor Company for a net consideration of $2.3 billion.

The global meltdown and high fuel prices, especially after September 2008 which saw vehicle financing and demand drying up, impacted auto industry worldwide, including JLR. The two British brands were profit making in 2007 and in the first half of 2008, Tata said.

Source: PTI
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