Giant Indian group Tata Motors is finally set to become the new owner of two of the world’s best-known luxury car models – the West Midlands-built Jaguar and Land Rover.

The deal, thought to be worth £1.1 billion, will be signed on Wednesday, according to insiders.

Present owner Ford is understood to be keen to complete the deal in time to meet its previous indications that the sale would take place early in 2008. 

This month there were reports that Tata had signed a one-year bridging loan for more than £1.5 billion with Citigroup and JP Morgan banks.

Ford has been in lengthy negotiations with steel and tea-maker Tata after it was chosen as preferred bidder, edging out rival Indian firm Mahindra and US private equity group One Equity Partners. 

Tata is believed to want to keep all three of Jaguar and Land Rover’s UK plants at Solihull and Castle Bromwich in the West Midlands and Halewood on Merseyside, where it employs a total of 13,500.

If the deal goes ahead it will be another big industrial acquisition for the ambitious Indian group.

Last year it bought the Anglo-Dutch steel maker Corus, which has several sites in the West Midlands.