'Brexit' Puts the Brakes on Sale of Port Talbot Works
07/05/2016 - The uncertainty arising from the U.K.’s Brexit vote is prompting Tata Steel to pause the sale of its Port Talbot works, reports The (London) Sunday Times.
According to the newspaper, Tata’s board has yet to formalize the decision, but it nevertheless intends to “stall” the sale as it awaits clarity on coming trade discussions with the European Union.
Tata initiated the sale of its U.K. strip business, which includes the Port Talbot works, early this spring, and this latest development doesn’t represent much of a change in status, according to a separate report in The (London) Telegraph.
“There’s no point hiding behind Brexit. The company has been in limbo for nearly four months,” said the unidentified source, who is said to be familiar with the bidding process. “This needs to be resolved and there are people ready, willing and able to resolve it.”
In the meantime, U.K. lawmakers are reaffirming promises of financial support for whomever buys the operation, according to The (London) Financial Times. But whether lawmakers are able to make good on those promises remains to be seen, the newspaper said.
It noted that U.K. business secretary Sajid Javid, who has offered to reform the British Steel pension plan, faces an uncertain future as he backed the effort to remain with the union.
Tata’s board of directors is to meet later this week in Mumbai and will reportedly be discussing the sale. India’s Business Standard newspaper said no major announcements are expected, but the Financial Times said the meeting could be a “crucial” moment in British steelmaking.
Tata initiated the sale of its U.K. strip business, which includes the Port Talbot works, early this spring, and this latest development doesn’t represent much of a change in status, according to a separate report in The (London) Telegraph.
“There’s no point hiding behind Brexit. The company has been in limbo for nearly four months,” said the unidentified source, who is said to be familiar with the bidding process. “This needs to be resolved and there are people ready, willing and able to resolve it.”
In the meantime, U.K. lawmakers are reaffirming promises of financial support for whomever buys the operation, according to The (London) Financial Times. But whether lawmakers are able to make good on those promises remains to be seen, the newspaper said.
It noted that U.K. business secretary Sajid Javid, who has offered to reform the British Steel pension plan, faces an uncertain future as he backed the effort to remain with the union.
Tata’s board of directors is to meet later this week in Mumbai and will reportedly be discussing the sale. India’s Business Standard newspaper said no major announcements are expected, but the Financial Times said the meeting could be a “crucial” moment in British steelmaking.
