The bidding for Jaguar and Land Rover is still going on and just as it nears the end Apollo – the American private equity house – has decided to join in. They have chosen to team up with the Mahindra & Mahindra – the Indian tractor builder – and will be seeing it through to the end hoping to get their hands on the two automakers.
Mahindra had put in dubs earlier in the race – but pulled out for what reason we don’t know. Yet, with the support of Apollo they decided that they have a much better chance at winning.
Presentations will be made to union leaders and John Hutton, Secretary of State for Business and Enterprise ,by the prospective buyers this week. Other contenders for the two carmakers which employ 15,000 people in the Midlands, include Indian industrial conglomerate Tata and private equity group One Equity. A key part of the negotiations is thought to involve the use of intellectual property and Ford’s continuing involvement.
One source said: “The intellectual property issue is important because Ford does not want the money it has invested in these companies being transferred outside to compete against it in other markets. “But at the same time a bidder wants full use of what it is buying.”
The presentations to Mr. Hutton have come about at the instigation of Ford, which is keen to retain its good links with the Government. Because of union fears over the record of private equity in business and Ford’s desire to maintain a positive image in the UK - where it is the biggest selling car brand - the Indian bidders are more likely to win.
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