Report: Tata Might Retain U.K. Steel Business
11/04/2016 - The Tata Group is to decide the fate of its U.K. steel business within the next four weeks, but is leaning toward retaining the operation, reports The Guardian newspaper.
Citing anonymous sources, The Guardian said Ratan Tata, interim chairman of the group’s holding company, is conducting a thorough review of Tata Steel UK before making the final decision, but is eager to keep the operation.
Tata took over as interim chairman following the unexpected ouster of Cyrus Mistry last month. Since then, Mistry has fired back at the company, warning the board that the company potentially could, over time, have to take US$18 billion in write-downs, largely on five businesses, including Tata Steel’s European arm.
The company has denied that allegation and others.
“These allegations are not based on facts or the true state of affairs,” it said in a statement.
Tata has been discussing a merger of its U.K. strip business in with thyssenkrupp’s steel business and, separately, has been looking to sell is special steel business.
But one source told The Guardian that Ratan Tata would likely move to fix its European steel operations rather than sell them.
Tata took over as interim chairman following the unexpected ouster of Cyrus Mistry last month. Since then, Mistry has fired back at the company, warning the board that the company potentially could, over time, have to take US$18 billion in write-downs, largely on five businesses, including Tata Steel’s European arm.
The company has denied that allegation and others.
“These allegations are not based on facts or the true state of affairs,” it said in a statement.
Tata has been discussing a merger of its U.K. strip business in with thyssenkrupp’s steel business and, separately, has been looking to sell is special steel business.
But one source told The Guardian that Ratan Tata would likely move to fix its European steel operations rather than sell them.
