Ananova:

Tata Motors has agreed to take over Land Rover and Jaguar in a deal worth around £1 billion, industry sources have said.

US giant Ford is set to announce that the Indian company will take ownership of the two British-based car companies on Wednesday, in a deal which is expected to safeguard about 16,000 jobs.

Tata, which already runs the former British Steel company Corus, has been in talks with Ford for some months. A spokesman for US giant Ford said: "We are not confirming anything until we have communicated any significant developments to our employees."

The deal is likely to include a commitment from the Indian company to preserve the style of Land Rover and Jaguar.

Based at Solihull in the West Midlands and celebrating its 60th anniversary this year, Land Rover has proved a profitable part of Ford's empire since the American company took it over in 2000. Land Rover's first model was the vehicle that bore the company's name and many of the early models are still in working order. Other famous models have included the Range Rover, the Freelander and the Discovery.

As a company name, Jaguar, which cannot match Land Rover's current profitability, dates from 1945 and has plants at Castle Bromwich in the Midlands and at Halewood, Merseyside. Famous models have included the E-type and the long-running XJ series.

The sale is expected to be welcomed by unions as the best deal to be had. Tata has already spoken of its commitment to the two marques and to UK motoring.

The company's boss, Ratan Tata, said at this year's Geneva Motor Show he planned to "retain the image, touch and feel" of both Land Rover and Jaguar. He went on: "There is no need to tinker with the brands. Our challenge is to make them thrive and grow."

Tata recently announced the "people's car" - the £1,200 Nana - and motoring experts believe that while Jaguar and Land Rover were only a small part of the vast Ford empire, the two British-based companies will be a major part of Tata's business.

The Tata takeover means that some of the most famous old British motoring names are in foreign hands, as BMW of Germany owns Mini and Rolls-Royce, while another German company, Volkswagen, is in charge of Bentley.