Mumbai, Feb 27 :     The Tatas announced the signing of corporate India's biggest-ever deal to acquire the UK-based Tetley's global operations for a staggering Rs 1,870 crore (£ 271 million). The buyout, which will pitchfork group company Tata Tea to a position where it can rub shoulders with global giants like Unilever and Nestle, will be financed through a mix of equity and debt. 'In a world where brand strength is the key to success, the acquisition of the Tetley brand will provide Tata Tea a valuable global opportunity,' Tata group chairman Ratan Tata told reporters at a press conference called to announce the deal . He appreciated the role played by the government and the Reserve Bank in the largest cross-border transaction by an Indian company. 'It's the largest acquisition by an Indian company abroad. As the country is opening up, it is significant that Tata Tea is going international, acquiring companies and reputed brands abroad.' Tata Tea vice-chairman R K Krishna Kumar, who fielded questions in the absence of MD S M Kidwai who is abroad for the GDR roadshows, said the deal was delayed because the Tatas managed to convince Tetley to divest its coffee business only on February 3. Asked if the takeover would lead to a change in guard, Kumar said the Tatas had full confidence in the Tetley management. 'Tata Tea will intervene as and when required.' The acquisition will be financed with £70 pound of equity, of which £ 60 million will come from Tata Tea. The balance £ 10 million will be raised from Tata Tea Inc USA, a 100 per cent subsidiary of Tata Tea. Tata Tea's GDR issue will finance £ 45 million of the equity component. Of the debt component, £ 20 million will be raised by issuing subordinate vendor loan notes and the balance will be raised through debt offerings arranged by Rabo Bank - the advisor and lead manager to the transaction. The Tetley acquisition will spur the Tatas to set up a new plant for instant tea, which will improve margins significantly. They already have a joint venture with Tetley for instant tea. The Tetley brand is one of the leading global tea brands and a market leader in the UK and Canada. Tetley has also a distinguished history of innovations, including the original tea bag and the draw-string bag. Its product portfolio is a wide one, covering tea bags, instant tea, flavoured tea, green tea, decaffeinated tea and even herbal tea. With the alliance, the Tatas hope to combine the strengths of Tata Tea with the Tetley group's strong market position in the UK, US, Canada, Australia and Europe. Blending and marketing will offer both companies synergies and a recipe for aggressive growth and expansion worldwide. The acquisition will also raise Tetley's current tea offtake of 8 million tonnes from India. Much of it is expected to come from Tata Tea's gardens in south India. Since the bulk of its purchase is used to make instant tea, the Tatas hope their output will fetch better prices and higher enjoy margins.