News: Tata in race for Visteon units, too

(DNA 07/10/2006) New Delhi - It seems the Tatas’ appetite for mega overseas acquisitions is far from sated.

Even as the group is believed to be in the running for the world’s seventh largest steel company, the UK-based Corus, it now transpires that the Tatas are in the race for parts of the loss-making US auto parts giant Visteon Corporation, formerly owned by Ford Motor.

The total acquisition cost of the various businesses of Visteon that is on the block is about $2.5 billion, according to sources.

Visteon already has two joint ventures with Tata Autocomp Systems Ltd (Taco), the auto component arm of the Tata Group. While Taco Engineering provides engineering services for Visteon operations globally, the second one, Taco Visteon, is manufacturing lighting products.

Visteon Corp is a $17 billion company, operating in 24 countries with over 170 manufacturing facilities and employs about 49,000 people.

It is into electronics, power train control, lighting, chassis and engine induction besides providing engineering services.
It also provides a range of products and services to aftermarket customers. It is not clear whether the Tatas are bidding for the entire company or for individual businesses.

Reno Raj, vice-president, corporate planning and M&A, at Taco, however, told DNA Money “We are not involved in any deal of this nature. Taco is scouting for opportunities in China and Europe but we are rather sceptical about the US market. We may be looking for acquisitions in the US at a later date but nothing is active right now.”