Less than three years after acquiring marquee British brand Jaguar Land Rover for a little over $2 billion, Tata Motors has set eyes on yet another European acquisition. The company is understood to be in talks to acquire the Warsaw-based Fabryka Samochodow Osobowych (FSO) car plant. A potential deal would give the company direct access to the Eastern European markets.

Though the exact valuation of the deal could not be ascertained, sources said Tata Motors has set aside $1 billion to make “small acquisitions” across Europe to power its global ambitions. The acquisition of FSO is going to be funded through this corpus, an industry executive with direct knowledge of the matter told FE.

Known for assembling models for various global carmakers, the Polish firm FSO is controlled by Ukraine’s UkrAvto that enjoys a 19.9% stake, which gives it 84.31% voting rights. The Polish government enjoys a minority stake of 2.69% in the plant. At present, FSO assembles Chevrolet Aveo II units under licence from South Korea’s GM Daewoo, but is due to end production of the model this year.