OK, buy-buy

James Bond has a preference for the Aston Martin, but the Jaguar is just as close a symbol of Britishness as you can find. Jaguar Cars, with headquarters in Coventry in the English West Midlands, holds royal warrants from both Queen Elizabeth II and her heir, Prince Charles. In proof that brands really do not have a nationality, Jaguar, along with Land Rover, was acquired this week by Tata Motors from that most iconic American auto-maker, Ford. Tata Motors is paying 2.3 billion for the purchase 8212; and how it capitalises on this lead into virgin markets will be a business story to watch in the future. For now, it is a window to watch the ascent of what are being called developing-country multinationals.

Tata Motors8217; entry into American and European markets is markedly different from, say, Asian multinationals like Samsung and Toyota. They built their outward expansion into foreign markets after establishing their products in their home territories, as it were. The Tatas are, of course, big in the Indian automobile market, and have even launched the new, new thing of the decade, the Nano. But it is not the brands established in India that they are taking overseas first. It is a strategy also used by China8217;s fast-expanding multinationals. The Tatas8217; purchase is also reflective of how fast absurd notions of national assets have disappeared. Recall the initial French resistance to steel-maker Laxmi Mittal8217;s ultimately successful takeover bid for Arcelor. And here a difference from China is revealed. As Tarun Khanna writes in his recent study of India and China, Billions of Entrepreneurs, till Arcelor or the Corus acquisition by Tata Steel, Indian companies tended to stay away from high-profile, high-value acquisitions 8212; unlike bids by Chinese entities like Lenovo, TCL, CNOOC and Haier. They have also been responsive to shareholder concerns for, among other things, transparency. As Indian companies gain the appetite for big purchases, we could be witnessing a phase of capitalism that has no name yet.