.jpg?downsize=773:435 "Tata Steel Abandons U.K. Exit Plan, Looks to Bring Strategic Partner for European Business")
Tata Steel's board decided to abandon the sale of its U.K. business after the country's vote to exit the European Union (EU) brought in uncertainty on the viability of its steel business, according to a statement by the company. The board is now looking to induct a strategic partner into the European business and exploring the option to include the U.K. business as part of this joint venture.
The board of Tata Steel has decided to also look at alternative and more sustainable portfolio solutions for the European businesses. Consequently, Tata Steel has now entered into discussions with strategic players in the steel industry, including thyssenkrupp AG. Discussions have been initiated to explore the feasibility of strategic collaborations through a potential joint venture.Tata Steel Statement
Talks are currently at a preliminary stage and there can be no certainty of a transaction as the outcome depends on consultation and negotiations with various stakeholders, including consultations with the the British government on the British Steel Pension Scheme, the company said in its press release.
Tata Steel announced on May 9 this year that it took forward seven expressions of interest to the next stage of a possible sale of its U.K. steel plants.
The company will now begin the process to develop a separate strategy for its European business.
We have initiated conversations for a strategic collaboration for our European businesses. A potential strategic combination of strip products businesses offers the best prospects to create a premium, world-class strip steel business with the scale and scope of capabilities to compete successfully on the global stage.Koushik Chatterjee, Group Executive Director and Tata Steel's Executive Director for Europe
Tata Steel will look to sell two other U.K. based units, the South Yorkshire-based Specialty Steels business and Hartlepool pipe mills, and claims it has already received several bids. These are standalone businesses not connected with their U.K. business and can, therefore, be sold off.
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