The protracted sales process has been underway since June last year when Ford announced the two marques were for sale as a package.

Tata was named as Ford's preferred bidder in January and talks over a sale have been ongoing since then.

Unite, the UK's largest trade union which also chose Tata as its preferred bidder, said it welcomed the Indian carmaker's takeover but voiced concerns over Ford's reluctance to retain a stake in the businesses.

Tony Woodley, joint general secretary of Unite, said that if Jaguar and Land Rover had to be sold then Tata was the best option.

"We would have much preferred Ford to keep the companies in the family, so to speak, especially with Land Rover being so profitable," he said.

"But with the commitments Tata have given to the future of Jaguar Land Rover and the long term supply agreements for components, especially engines from Bridgend and Dagenham, we're obviously pleased they are in the game."

Woodley added that there was disappointment that Ford had decided against taking a stake in the new future of the company.

"That is a big disappointment," he added.

Jaguar and Land Rover employ around 16,000 people in the UK and today's deal is believed to safeguard those jobs.