India’s Mahindra & Mahindra has decided not to bid for Jaguar and Land Rover, a local paper reported on Friday.
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The Economic Times of India said M&M vice-chairman Anand Mahindra has refused to comment.
Citing motor industry and investment bank executives, the paper said Tata Motors remained strongly committed to the deal and was expected to be among the three major contenders vying for the two Ford-owned British brands.
“M&M’s exit from the race reduces the possibility of a fierce bidding war that could well push up the final price well beyond the fair value,” the Economic Times of India said, adding that Tata had also declined to comment.
Citing industry sources, the paper said a top-level M&M team had visited the Jaguar and Land Rover factories in England. The decision to pull out was primarily driven by two concerns – the fact that both companies could remain dependent on Ford for the supply of powertrains, and proposed CO2 emission regulations in the European Union which companies with no small and fuel-efficient cars in their line would have difficulty meeting.
