Tata Motor bids for bankrupt Saab Automobile

Indian auto major, Tata Motors is said to have placed bids amounting to USD 350 million for bankrupt Swedish auto maker Saab Automobile's assets, as per the sources in the know of development.

The report mentioned that the Tata's global acquisition team was continuously working on the deal and were negotiating with Saab and private equity players for a possible take-over by its Jaguar-Land Rover (JLR) unit.

Earlier, Saab, a Swedish automobile manufacturer owned by a Dutch manufacturer, had filed for bankruptcy in December 2012 after it could not find adequate funds which led to the suspension of production at the Saab's main plant in Trollhattan, Sweden.

According to the reports, at least four non-Swedish companies have placed bids to buy out Saab automobile and all of its assets.

Tata Motors services both luxury and cheap segments of the markets had bought JLR unit from US Ford Motor in 2008 for USD 2.3 billion as it was looking to spread it wings beyond Asia.

The competition to Tata Motors could possibly come from another Indian group Mahindra & Mahindra (M&M) and China's Youngman.

Read more about: tata motors
Story first published: Tuesday, March 6, 2012, 23:32 [IST]
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