Report: Tata Pushes Back Decision on Sale of U.K. Business
06/09/2016 - Tata Steel apparently is going to give itself more time to consider the fate of its struggling U.K. business, extending the timeline for naming a preferred bidder for the operation, reports the (London) Financial Times.
According to the Times, Tata had planned to select a bidder by its monthly board meeting, set for 24 June. The decision now likely won’t come until later, the newspaper reported.
“Circumstances have changed, which means we have to re-evaluate the decision to divest — though that decision could still go either way,” an anonymous source close to the company told the Times.
The U.K. government is offering a package of incentives to would-be buyers, including loans and equity stake in the business. The package also is open to Tata, if it holds on to the business, the Times said.
Media outlets last week reported that Tata was, in fact, considering retaining the business.
In another steel-related development, the U.K. government said it would commission research on what it will take to secure the domestic industry’s long-term future, reports The Guardian newspaper.
The U.K.’s steel industry has been on the verge of collapse. Last year, Thai-owned Sahaviriya Steel Industries was forced to shut down its Redcar works in Teesside, England, after being sunk by low steel prices and heavy debts. Tata, meanwhile, has been restructuring in Europe, selling its long products business and, separately, two Scottish plate mills that had been marked for closure.
Scores of steel jobs have been lost throughout the U.K. industry; however, the buyer of Tata’s plate mill is, at least, looking to fill 100 positions as it prepares to resume production in mid-September, reports the BBC.
"I am delighted to see these plans for recruitment and the resumption of steel production at (the facilities), following the concerted efforts of the task force involving unions, local authorities and the Scottish government,” Scotland Economy Secretary Keith Brown told the BBC.
“Circumstances have changed, which means we have to re-evaluate the decision to divest — though that decision could still go either way,” an anonymous source close to the company told the Times.
The U.K. government is offering a package of incentives to would-be buyers, including loans and equity stake in the business. The package also is open to Tata, if it holds on to the business, the Times said.
Media outlets last week reported that Tata was, in fact, considering retaining the business.
In another steel-related development, the U.K. government said it would commission research on what it will take to secure the domestic industry’s long-term future, reports The Guardian newspaper.
The U.K.’s steel industry has been on the verge of collapse. Last year, Thai-owned Sahaviriya Steel Industries was forced to shut down its Redcar works in Teesside, England, after being sunk by low steel prices and heavy debts. Tata, meanwhile, has been restructuring in Europe, selling its long products business and, separately, two Scottish plate mills that had been marked for closure.
Scores of steel jobs have been lost throughout the U.K. industry; however, the buyer of Tata’s plate mill is, at least, looking to fill 100 positions as it prepares to resume production in mid-September, reports the BBC.
"I am delighted to see these plans for recruitment and the resumption of steel production at (the facilities), following the concerted efforts of the task force involving unions, local authorities and the Scottish government,” Scotland Economy Secretary Keith Brown told the BBC.
