| Log in
Reuters Photo Credit: Reuters

Tata Steel pauses sale of UK assets, looks for partner

09 July, 2016

Putting on hold its UK business sale amid Brexit uncertainty, Tata Steel today decided to explore other alternatives including joint venture with German giant ThyssenKrupp AG.

Tata Steel after its board meeting today announced that it has decided to look at alternative and more sustainable portfolio solutions for the European businesses.

The company has now entered into discussions with strategic collaborations through a potential joint venture.

However the talks are currently at preliminary stage and there can be no certainty of a transaction as the outcome depends on consultation and negotiations with various stake holders, a company statement said here.

In March this year, Tata steel announced that it would explore strategic alternatives for its UK business, including the potential sale of the business as a whole or in parts.

The company and its advisers then contacted around 200 potential financial and industrial investors around the world to explore their interest in the business.

The company has also deeply engaged with the Government of the UK and Wales at every stage of the process.

Meanwhile, UK business minister Sajid Javid today held talks here with the senior management of Tata Steel including chairman Cyrus Mistry ahead of the company s board meeting later in the day.

Javid’s meeting with Tata management was crucial amid the reports that Tata Steel may “pause” its plans to sell off most of the troubled UK units, including the mammoth Port Talbot steelworks in Wales.

Although Javid did not meet the media, he later tweeted, “Just finished meeting with Tata Steel in Mumbai. Now off to Delhi for talks on UK/India trade.” 

“This is part of our ongoing dialogue with Tata to maintain momentum and achieve a long-term solution for UK steelmaking,” the Department for Business, Innovation and Skills had said in a statement in UK yesterday.

The steel major is expected to proceed with the sale of its speciality steel making business, which employs 2,000 employees in sites of Hartlepool, Rotherham and Stocksbridge in the UK, and possibly s helve plans for the rest of its steelworks as a result of rising steel prices and uncertainty following Britain s vote to leave the EU.

Like this report? Sign up for our daily newsletter to get our top reports.

Leave Your Comment
Tata Steel starts talks with Liberty House to sell UK speciality steel biz

Tata Steel starts talks with Liberty House to sell UK speciality steel biz

TEAM VCC 1 year ago
Tata Steel Ltd said on Monday it has agreed to negotiate the potential sale of...
Greybull Capital may buy Tata Steel's European long products unit

Greybull Capital may buy Tata Steel’s European long products unit

PTI 2 years ago
Tata Steel is in talks with investment firm Greybull Capital to sell Long...
How dealmaking in stressed assets is reshaping India's steel industry

How dealmaking in stressed assets is reshaping India’s steel industry

Shailaja Sharma 5 days ago
The steel industry in India, the world’s third-biggest producer of the...
No Comments

Tata Steel pauses sale of UK assets, looks for partner

Powered by WordPress.com VIP