Gulf funds eye $6bn Jaguar, Land Rover bids

The Jaguar car manufactuaring plant is pictured at Halewood, in Liverpool, in north-west England, 12 June 2007. (PAUL ELLIS/AFP/Getty Images)

Two UAE investment funds are targeting luxury car brands Jaguar and Land Rover, in a deal that could be worth up to $6bn.

Dubai International Capital (DIC) and Abu Dhabi's Mubadala Development Company (MDC) are planning a bid for one or both companies, according to a report in The Observer today.

The British newspaper reported that the two state-owned funds could be met with less hostility from British unions, which have voiced concern over the possibility that a private equity group may buy the carmakers.

Neither DIC or MDC were available for comment when contacted by ArabianBusiness.com.

Competition from Japanese rivals forced Ford to put Jaguar and Land Rover up for sale, with private equity groups such as Blackstone, Apollo and Cerberus Capital tipped as possible buyers.

Ford's president for the Americas said on Friday the company was "continuing to evaluate everything" with regard to Land Rover and Jaguar, according to Reuters. He declined to comment on whether it had received indications of interest from potential buyers.

A purchase of Jaguar and Land Rover by the UAE investors would bolster the region’s status in the 'luxury' car world. MDC already owns of 5% of Ferrari, and Abu Dhabi plans a theme park devoted to the brand.

In May a Kuwaiti investor put up £240m as part of a deal to buy Ford-owned Aston Martin.

Today the Kuwait Investment Authority announced that it would keep its 7.2% stake in German car maker DaimlerChrysler. DIC itself bought a $1 billion stake in DaimlerChrysler in 2005, but said in May that it has sold the shares.

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