Tata Buys Jaguar & Land Rover For $2.3 Billion

India's Tata Motors Ltd announced a $2.3 billion deal on Wednesday to buy Jaguar and Land Rover from Ford Motor Co, a transaction that gives the Indian automaker a line-up ranging from the world's cheapest car to some of its more expensive.

For Tata, which plans to launch the ultra-cheap $2,500 Nano or "People's Car," the addition of the profitable Land Rover brand provides an edge against Indian rival Mahindra & Mahindra Ltd, which had also pursued a deal with Ford.

The sale price is roughly 40 percent of what Ford paid for the two brands. Ford acquired Jaguar for $2.5 billion in 1989, but failed to turn the British nameplate into a higher-volume brand. Ford paid $2.75 billion for Land Rover in 2000.

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