this ppt is all about the merger between Tata and jaguar... when this was happen ? where? n how?

1. TATA MOTORS AND JAGUAR

2. Acquisition
•When one company takes over another and clearly
established itself as the new owner, the purchase is
called an acquisition.
•Acquisition is generally considered negative in nature

3. SYNERGIES RELATED TO ACQUISITION
 Staff reductions
 Acquiring new technology
 Improved market reach and industry visibility

4. Takeovers
 A corporate action where an acquiring company makes
a bid for an acquiree . If the target company is publicly
traded, the acquiring company will make an offer for
the outstanding shares.

5. Takeover might be : Takeover
Friendly
Hostile Takeover Target company's
A takeover attempt that is management and board of
strongly resisted by the directors agree to a merger or
target firm acquisition by another
company.

6. WHY SHOULD FIRMS TAKEOVER?
 To gain opportunities of market growth more quickly.
 To seek to gain a more dominant position in a national
or global market
 To acquire the skills or strengths of another firm.
 To acquire a speedy access to revenue
 To diversify its product or service range to protect itself
against downturns in its core markets

7. Major M&A Deals Undertaken Abroad by India Inc.
USD 12.1
Tata Steel buys Corus Plc
billion
Hindalco acquired Novelis USD 6
Inc. billion
USD 2.3
Tata buys Jaguar and Land Rover
billion
USD 1.58
Essar Steel acquired Algoma Steel
billion
Suzlon Energy Ltd. acquires USD 1.6
REpower billion
7

8. THE DEAL………………

9. •Location: Dearborn,
Michigan
•Founded: 1903 by Henry
Ford
•Competitors: General
Motors, Toyota
•Brand names: Lincoln,
Mercury, Volvo, Mazda,
Jaguar and Land Rover
Henry Ford and his Model T
•CEO: Alan Mulally

10. Jaguar: The ups and downs
 1922 - Founded in in Blackpool as Swallow Sidecar
company
 1960 - Jaguar name first appeared in 1935
 1975 - Nationalized in due to financial difficulties
 1984 - Floated off as a separate co in the stock market
 1990 - Taken over by Ford

11. Jaguar: The ups and downs
 A statement of ultra luxury
 Holds Royal warrants
 Rarely advertised
 Ford’s formula one entry since 1990s

12. Why acquire Jaguar
 Long term strategic commitment to automotive sector
 Opportunity to participate in two fast growing auto segments
(premium and small cars) and to build a comprehensive
product portfolio with a global footprint immediately
 Increased business diversity across markets and product
segments
 Unique opportunity to move into premium segment with access
to world class iconic brands.
 Jaguar offers a range of “Performance/Luxury” vehicles to
broaden the brand portfolio.
 Sharing of best practices between Jaguar, Land Rover and Tata
Motors in the future

13. The Deal Process
 July 2007- Announcement from Ford that it plans to
sell Land Rover and Jaguar.
 August 2007 - Major bidders are identified

14. The Deal Process
Likely buyers
 Tata Motors
 M&M
 Ceribrus capital Management
 TPG Capital
 Apollo Management

15. The Deal Process
 India’s Tata Motors and M&M arrive as top bidders ($
2.05b & $ 1.9b)
 Jan 2008 – Ford announces Tata as the preferred
bidders
 March 2008 - Ford agreed to sell their Jaguar Land
Rover operations to Tata Motors.
 June 2008 – The acquisition is complete

16. TATA MOTORS – A SNAPSHOT
 TATA GROUP – 150 YEAR OLD
 Previously Tata Engineering and Locomotive
Company, Telco
 Tata Motors’s break-even point for capacity utilization
is one of the best in the industry worldwide
 listed on the New York Stock Exchange in 2004

17. Ratan tata says
• 'We have enormous respect for the two
brands and will endeavor to preserve and
build on their heritage and
competitiveness, keeping their identities
intact,' he said in a statement.

18. Why acquire JLR?
Is TATA catching a falling knife…or
 Long term strategic commitment to automotive sector.
 Opportunity to participate in two fast growing auto segments.
 Increased business diversity across markets and products.
 Land rover provides a natural fit for TML’s suv segment.
 Jaguar offers a range of “performance/luxury” vehicles to
broaden the brand portfolio.
 Benefits from component sourcing,design services and low
cost engineering.

19. Tata and the dream…
NEED FOR GROWTH
 In the past few years, the Tata group has led the growing
appetite among Indian companies to acquire businesses
overseas in Europe, the United States, Australia and Africa -
some even several times larger - in a bid to consolidate
operations and emerge as the new age multinationals.
 Tata Motors is India's largest automobile company, with
revenues of $7.2 billion in 2006-07. With over 4 million Tata
vehicles plying in India, it is the leader in commercial vehicles
and the second largest in passenger vehicles.

20. Result
 ACTUAL 2.3 BILLION $
 VALUATION 2.80 BILLION $

21. by- AVI