Tata Steel gains 2.5% as investors cheer pact with Liberty House

Tata Steel gained as much as 2.5% in in pre-opening trade on Tuesday as the company on Monday announced signing an agreement with Liberty House to sell its specialty steels business in UK for 100 million pounds. 

The company said, "“The letter of intent covers several South Yorkshire-based assets including the Rotherham electric arc, steelworks, the steel purifying facility in Stocksbridge and a mill in Brinsworth as well as service centres in Bolton and Wednesbury, UK and in Suzho and X’ian, China. Speciality Steel employs about 1,700 people making steels for the aerospace, automotive and the oil and gas industries.”

“The Speciality Steel business is independent of the pan-European strip products supply chain and today’s announcement is in line with the overall restructuring strategy of the UK portfolio. This is an important step forward in seeking a future for Speciality Steels and we have reached this stage thanks to the efforts of employees, trade unions and management. We now look forward to working with Liberty on the due diligence and other work streams so that the sale can be successfully concluded. We will continue to work closely with trade unions and will communicate any material news on this issue to the employees on an ongoing basis,” Bimlendra Jha, CEO Tata Steel UK said.

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