File picture: Darren Staples / Reuters.
File picture: Darren Staples / Reuters.

Tata denies it's selling Jaguar Land Rover to Peugeot

By Paul Sandle and Laurence Frost Time of article published May 10, 2019

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London - The PSA Group said on Thursday that it was ready to consider potential tie-ups, after the French carmaker's shares briefly rose on a report that it was in advanced talks with Tata Motors to acquire Jaguar Land Rover (JLR).

The Peugeot maker declined to comment on a report by British news agency The Press Association that a deal was imminent. Tata denied the report, which cited sources referring to an internal "post-sale integration document" describing cost savings.

"As a matter of policy, we do not comment on media speculation, but we can confirm there is no truth to these rumours," said a spokesperson for the Indian carmaker, which owns 100 percent of JLR.

However, PSA spokesman Alain Le Gouguec said: "On principle we are open to opportunities that could create long-term value for PSA Group and its shareholders."

PSA is setting new profitability records even as it continues to integrate Opel/Vauxhall, acquired from General Motors in 2017, and has previously signalled openness to further acquisitions.

The relative fuel-efficiency of its vehicle technologies is a valuable asset as carmakers battle to meet tougher European emissions targets and avoid huge fines.

JLR, by contrast, faces one of the toughest challenges to comply with looming carbon dioxide goals - compounded by the uncertainty and disruption of Britain's protracted departure from the European Union.


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