This morning it was official.    Tata, India’s biggest vehicle manufacturer, has bought Jaguar and Land Rover from Ford.

For Tata, it provides two brands of global recognition, and technical expertise.  It could potentially lever off these two attributes, and when combined with own its unique selling points – largely cheap labour,  propel itself forward onto the world stage.   Jaguar and Rover may yet become associated with enormous success.

The end result could be an exodus of jobs from the UK, although unions seem to be optimistic the deal will mean the opposite.  

Equally, we could be witnessing an example of globalisation working.   British expertise combined with India’s labour pool to create a new giant on the automobile stage – eventually.

Interestingly, KPMG also released a report this morning, showing that Indian companies are leading the charge for acquisitions within the developed economies. 

According to KPMG’s Emerging Markets International Acquisition Tracker (EMIAT), which analyzes deal flows between 10 selected emerging economies and 11 key developed markets, 35 deals between India and the developed economies were completed in the second half of 2007, compared with 34 in the first half.
In all, the second half of 2007 saw 62 companies from the developing world buying companies in the developed world.  This compares with 78 in the first six months.

By contrast, there were 105 deals involving companies in the developed world buying companies in the developing world in the second half of the year, but in the previous six months there were 148 such deals.   

The US is the one country whose activity has tailed off the most, according to the Tracker. After recording 83 deals into the emerging markets a year ago – and another 67 six months ago – American deal activity collapsed to just 39 deals this time round. The reason seems quite clear – China. Having accounted for 73 US-backed deals in the previous twelve months, China registered a mere eight in the past six months.

© Investment & Business News 2013