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India's Tata Motors has just recieved a $3 billion loan from Citigroup and JP Morgan that will likely to be used to purchase luxury British auto brands Jaguar and Landrover. Tata has been in acquisition talks with Ford about the two brands since at least the beginning of the year, and the deal is now expected to be finalized around the Mar. 26.

If Tata's bid succeeds, the company would become the producer of the world's cheapest car, the $2,500 Nano, and some of its most expensive. The paradox raises the question -- will Tata be able to cut costs for its new luxury brands, whose troubles are well-known? Tata's chairman has already ruled out shifting the production of Jaguar and Land Rover vehicles from Britain to cheaper locations, though Wharton's John Paul MacDuffie believes Tata could restore the brands to profitability through other means.

For an India that was ruled by Britain for nearly ninety years, Tata's purchase will starkly reinforce the arrival of the "post-colonial" moment. As MacDuffie explains, "there might be a certain sense of pride in acquiring the 'Jewel in the Crown'." Like Tata's previous acquisition of British steelmaker Corus and teamaker Tetley, and India's United Breweries Group's purchase of Scottish whisky distiller Whyte & Mackay, Tata's acquisition of Jaguar and Land Rover would symbolize yet another "post-colonial table turn."

Tata is well aware of the potential blow to British pride. "These brands will continue to belong to Britain," Chairman Ratan Tata has assured. Except that now, they will be owned by an Indian company.