Tata Steel cancels sale of UK biz plants; to cut cost by 100 million pounds
The company is planning a potential joint venture with Thyssenkrupp.
Tata Steel has cancelled the sale of UK business plants and the company is expected to cut costs by 100 million pounds, sources told Zee Business.
On Friday, UK's Business Minister Sajid Javid met Tata Steel Chairman Cyrus Mistry at the monthly board meeting in Mumbai, and decided to explore strategic alternatives and more sustainable portfolio solutions for the behemoth's European businesses.
"The Tata Steel Ltd Board also reviewed the performance of the European business. The Board continues to support the business so that Tata Steel Europe can secure the supply chain to customers of the premium steel products they demand and maintain strong relationships with other stakeholders", the company said in a regulatory filing.
Soon after, the company initiated discussions with strategic players in the steel industry, including Thyssenkrupp AG. The company is planning a potential joint venture with Thyssenkrupp.
Koushik Chatterjee, Group Executive Director and Tata Steel’s Executive Director for Europe, said in the filing: “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.”
In March, the company had announced a potential sale of the business as a whole or in parts. At the time, the company had contacted 200 potential buyers and investors, which also included Sanjeev Gupta of Liberty House.
Later in May, the company shortlisted seven possible bidders but for now, the sale has been scrapped.