Red Bull's Austrian billionaire owner Dietrich Mateschitz said the team would use engines made by Cosworth, which Jaguar-owners Ford had also put up for sale. Red Bull was Jaguar’s F1 sponsor this year.
Ford put Jaguar Racing and Cosworth up for sale in September as part of a major cost-cutting programme. The team had until Monday to find a buyer in order to meet the deadline for teams to enter the 2005 Formula One championship.
There are reports Ford asked for a symbolic $1 if the new owners guaranteed to invest $400m (£215m) into the team over the next three Grand Prix seasons. Other sources say the asking price was $28 million.
The takeover could secure the future of the 300-strong Milton Keynes-based team, although Mateschitz made no assurances regarding jobs.