PSA Group stated on Thursday it was ready to think about potential tie-ups, after the French automaker’s shares briefly increased on a report that it was in advanced discussions with Tata Motors to acquire UK-based Jaguar Land Rover (JLR).
The Peugeot maker refused to discuss a report by British news agency The Press Association that a deal was approaching. Tata rejected the report, which mentioned sources referring to an internal “post-sale integration document” describing expense savings.
“As a matter of policy, we do not discuss media speculation, but we can confirm there is no reality to these rumors,” stated a spokesperson for the Indian carmaker, that completely owns JLR.
PSA shares jumped following the publication of the PA report, before dropping back after Tata issued its statement.
“On principle, we are open to opportunities that could create long-term value for PSA Group and its shareholders,” stated Alain Le Gouguec, a representative for the Paris-based manufacturer.
PSA is setting new profitability records even after it continues to integrate Opel/Vauxhall, purchased from General Motors in 2017, and has signaled openness to further acquisitions earlier.
The relative fuel-efficiency of its vehicle technologies is a significant asset as automakers battle to meet stricter European emissions targets and prevent hefty fines.
JLR, by contrast, faces one of the toughest challenges to adhere to looming carbon dioxide goals – compounded by the tensions and disruption of Britain’s protracted exit from the European Union.
Tata Motors posted a record $4 billion loss for its fiscal third quarter ended December 31 and cautioned that JLR would swing to an operating loss in the full year to March.