Tata has announced that it is to buy Ford’s Jaguar Land Rover operations.

The Tata Group, India’s oldest and largest corporation, has announced it is to buy Ford’s Jaguar Land Rover operations for US$2.3 billion (around £1.15 billion).

The sale comes after Ford announced its intention to explore strategic options for the Jaguar Land Rover business, and stated that it wished to focus on its “core Ford brand”.

Alan Mulally, President and CEO of the Ford Motor Company, said: “Jaguar and Land Rover are terrific brands. We are confident that they are leaving our fold with the products, plan and team to continue to thrive under Tata’s stewardship. Now, it is time for Ford to concentrate on integrating the Ford brand globally, as we implement our plan to create a strong Ford Motor Company that delivers profitable growth for all.”

Ford will continue to supply Jaguar Land Rover components, engineering and other support, while also providing financing for its Jaguar Land Rover customers during the transitional period.

Ratan N. Tata, Chairman of Tata Sons and Tata Motors, was pleased to welcome the brands into the Tata business: “We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact. We aim to support their growth, while holding true to our principles of allowing the management and employees to bring their experience and expertise to bear on the growth of the business.”

The sale is to close by the end of the next quarter, when Ford will also contribute around US$600 million to the Jaguar Land Rover pension plans. Roger Maddison, Unite National Officer for the automotive industry, welcomed this news. He said: “Unite has secured written guarantees for all five UK plants on staffing levels, employee terms and conditions, including pensions, and sourcing agreements. The sale ensures our members’ futures and we look forward to working with Tata.”

Tata already employs around 2.9 million people worldwide. This sale will affect around 16,000 of Ford’s Jaguar Land Rover employees.