Tata intends to become truly global player in the premium car global market after taking over Land Rover and Jaguar from Ford. Europe top anti-trust watch dog had not given the clearance to takeover on hold on the grounds of competition threats. Now it has given its approval through fast-track procedures that are usually reserved for transactions that are not expected to problems.
Tata had announced to buy two British luxury brands from its US owner Ford for 2.3 billion dollars. It plans to expand its reach beyond Asian sub-continent and become major player in auto market across the globe. It had been waiting for European Union’s green signal for the final take over. The 27 member European Union panel announced in Brussels that it has granted clearance under the EU Merger Regulation.
Earlier, US anti-trust authorities had given their clearance to the deal already. They had completed their review to the $2.3 billion deal without taking any action to block the same.
There had been skepticism about the take over that there would be some damaging cuts following the take over or there would be compromise with company ethos. Ratan Tata, head of Tata group had been providing reassurances to the skeptical beliefs.
“Out mandate is we don’t want to change the look and feel of a company,” he said in October.
“When Tata is done buying a company, it should look the same as before, except no it’s owned by someone in India.”
