Tata Denies Plans to Sell Jaguar Land Rover to PSA

Tata Motors Ltd. says there is “no truth” in a British media report that the company is poised to sell its Jaguar Land Rover unit to PSA Group.

Rumors about a would-be JLR sale have been circulating for months. Tata denied one of them, which was floated by Bloomberg News sources, two months ago. This week’s speculation comes from the U.K.’s Press Association, which cites a post-sale integration document that describes the benefits of such a merger.

In March, sources told Bloomberg News that PSA was interested in equity partnerships and considered Fiat Chrysler Automobiles, General Motors and JLR as suitable prospects. In the same month, The Wall Street Journal reported that FCA rejected an overture from PSA to merge.

Tata acquired JLR from Ford Motor Co. in 2008. The British unit soon buoyed Tata’s financial results. But the unit’s fortunes have been hurt by slumping diesel sales, worries about Brexit and a sharp downturn in demand in China.

Tata warned earlier this week that JLR would report an operating loss for the fiscal year ended March 31. The unit posted its third consecutive quarterly loss—£3.4 billion ($4.4 billion) in October-December—after a £3.1 billion writedown of assets.