(From left) Lewis Booth, executive vice-president of Ford Motor Company, David Smith, CEO of Jaguar Land Rover, Ratan N. Tata, chairman of Tata Sons and Tata Motors, and Ravi Kant, managing director of Tata Motors, at Gaydon in the UK on Monday. A Telegraph picture

Mumbai, June 2: Tata Motors Ltd today announced that it has completed the acquisition of Jaguar Land Rover (JLR) for $2.3 billion. David Smith, the acting chief executive officer of Jaguar Land Rover, will be the new CEO of the business.

On March 26, Ford Motor Company had entered into a definitive agreement with Tata Motors to sell both the iconic brands in an all-cash transaction.

Under the terms of the deal, Ford contributed about $600 million to the Jaguar Land Rover pension plans.

While the consideration has been paid to Ford, Tata Motors had in the past said JLR would not be merged with the company and that it would operate as a subsidiary.

Ratan Tata, chairman of Tata Sons and Tata Motors, was present at a ceremony held at Jaguar Land Rover’s headquarters at Gaydon in the UK where the plants were formally handed over to the Tatas.

Don Leclair, executive vice-president and chief financial officer of Ford Motor Company, and Lewis Booth, executive vice-president of Ford Motor, who has responsibility for Ford of Europe, Volvo and Jaguar Land Rover, were also present.

Tata Motors said in a statement that long-term agreements had been reached for the supply of engines, stampings and other components to Jaguar and Land Rover. Other areas of transition support from Ford include information technology, accounting and access to test facilities.

The two companies will continue to co-operate in areas such as design and development through sharing of platforms and joint development of hybrid technologies and powertrain engineering.

According to Tata Motors, Ford Motor Credit Company will continue to provide financing for Jaguar Land Rover dealers and customers for a transition period.

Tata Motors is also engaged in an advanced stage of negotiations with leading auto finance providers to support the Jaguar Land Rover business in the UK, Europe and the US. It is expected to select financial services partners soon.

Last week, Ravi Kant, managing director of Tata Motors, told reporters after the company announced its annual results that the JLR deal would be closed this month. Tata Motors is also coming out with a rights issue of over Rs 7,000 crore to fund the acquisition.

“This is a momentous time for all of us at Tata Motors,” Ratan Tata said. “Jaguar and Land Rover are two iconic British brands with worldwide growth prospects. We are looking forward to extending our full support to the Jaguar Land Rover team to realise their competitive potential.”