The line-up of suitors, including Tata Motors, Mahindra & Mahindra and a slew of private equity players, currently circling Ford’s Jaguar and Land Rover brands may not need to pick up the ailing businesses at one fell swoop.
According to auto analysts quoted in international media, Ford is planning to retain a 30-50% holding in the Jaguar and Land Rover businesses, the backbone of Ford’s luxury stable.
By opting not to sell the entire stake, Ford may, in fact, make it somewhat easier for the deal to go through because it may substantially reduce the acquisition cost for any bidder and also enable Ford to get a good price. While Ford has never publicly discussed the deal, analysts have estimated the valuation of the two entities at $1.9 billion.
Read more in The Economic Times article.
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