Tata Steel Suspends Sale Talks

The proposed sale of the UK arm of Tata Steel has been suspended by the company as it tries to find different and more sustainable options for its portfolio in Europe, entering into discussions with players within the steel industry.

According to Insider Media, Tata Steel is now looking into the possibilities of entering into a joint venture with other steel companies, including Germany’s Thyssenkrupp. Apparently, the result of the EU referendum on June 24th led to the company reviewing its sale, as well as discussions regarding the British Steel Pension Scheme.

Incoming bids that were received by Tata when the sale process was started earlier in the year included those from Liberty House, Excalibur Steel UK, JSW Steel, Greybull Capital, Hebei Iron and Steel Group, and Endless.

Group executive director and executive director for Europe Koushik Chatterjee was quoted by the news source as saying: “It is too early to give any assurances about the success of these talks. Such success, especially the inclusion of the UK business in the potential joint venture, would depend on several issues including finding a suitable outcome for the British Steel Pension Scheme, successful discussions with the UK trade unions and the delivery of policy initiatives and other support from the governments of the UK and Wales.”

Earlier in 2016, business secretary Sajid David and other business ministers wrote to European commissioners to warn them that the steel industry across Europe faces risk of collapse because of imported Chinese steel and dumping of rebar and other such materials. Further job losses could be seen as a result of decisions by the EU to bring in low level duties for imports from China.