There was a time when $3 billion dollars sounded like an impossible amount of money. Now our major banks make profits far greater than this each year and it really doesn?t seem like a lot to pay for two of the world?s more iconic and well known brands.
An anonymous source inside Tata Motors is reported to have confirmed that the Indian manufacturer has secured a loan for $US3 billion that will allow it to proceed with the purchase of Jaguar and Land Rover from Ford.
In what are becoming difficult times to secure credit, Tata are believed to have arranged loans with both Citigroup and JPMorgan although all parties to the transaction are staying tight lipped.
In addition to the $US3 billion that Tata have raised for the purchase, it is believed that a further $US4 billion is being raised via domestic and foreign debt markets. It is envisaged that these funds will be used to ensure that Jaguar and Land Rover have the required cash to operate effectively as well as assisting with putting the upcoming Nano into production.
There are even rumours that Tata are looking to purchase shares in Ferrari.