news analysis
ZEENAT MOORAD: Jaguar Land Rover on acquisition prowl
Jaguar Land Rover, owned by Tata Motors, is eyeing high-end brands for its portfolio
Wheels and deals
Jaguar Land Rover (JLR) is on the acquisition prowl. The luxury car unit, owned by Tata Motors, wants to buy upscale marques (that’s a fancy word in the car world that just means brand) that would fit into its portfolio. Should a deal take place, it would be the first by JLR since 2008, when Tata bought it for US$2.4bn from Ford, which, if you remember, renewed focus on its North American operations. Most investors were sceptical when that deal was first mooted. By most accounts, however, the tie-up didn’t end up a bust. Land Rover remained sustainably profitable and Jaguar eventually turned the corner. (Granted, cost savings and synergies erred on the side of underwhelming.) Tata is now almost entirely dependent on JLR for profits. The luxury unit accounts for 80% of its revenue and 96% of operating income. Lately it’s been hairy, though. Tata’s domestic business has been doing poorly, and sales of its luxury brands are waning. It now wants to bulk up and buy its way to growth so t...
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