Tata Sets its Eye on Seven Bids -- Maybe More -- for U.K. Business
05/11/2016 - Seven preliminary offers for Tata Steel’s U.K. business have passed an initial review and will receive further consideration from the company. And it may add others to the list, Tata has announced.
In a statement, Tata said the offers for the business, which is being divested as it exits the U.K., are for the operation as a whole – it rejected offers that were for parts of the business. It also said it is has asked for clarification on elements of other preliminary offers, leaving open the possibility that the list of suitors making the cut may grow.
Tata in March announced that it no longer saw a way to operate profitably in the U.K. and would consider selling the business, which includes the integrated Port Talbot works, the U.K.’s largest steelmaking facility. Tata wants to divest the business as soon as possible.
Koushik Chatterjee, Tata Steel Ltd. corporate and finance group executive director, said the company is pleased with the responses it has received so far. He added that executives, in conducting the initial review, weighed input from the U.K. government.
“We believe that the bids being taken forward offer future prospects of sustainability for the U.K. business as a whole. The sales process will continue as announced earlier in an expedited and robust manner to deliver greater clarity for all key stakeholders such as employees, customers and suppliers,” he said.
Tata didn’t disclose the names of the bidders. However, two that have confirmed their interest in the business are Excalibur Steel, a management group hoping to buy out the operation, and metals trading firm Liberty House.
It wasn’t clear whether their offers were among those that advanced to the next stage of consideration, according to The Wall Street Journal.
Meanwhile, The (India) Economic Times reported that debt-laden JSW Steel had put down an offer for the business.
"As part of company's growth strategy, the company evaluates several opportunities including the current opportunity of UK steel facilities," a JSW Steel spokesperson told the newspaper. "It is premature to add any further at this stage."
Additionally, India’s Mint business newspaper reported that Hebei Iron & Steel was said to be interested, although the report wasn’t clear whether it had submitted an offer and whether it had been accepted.
Another company reportedly interested in the business is America’s Nucor Corp., according to The (London) Telegraph.
Nucor, however, declined comment.
“We do not comment on our potential involvement in any acquisition activity,” a Nucor spokeswoman said in a statement to AIST’s Steel News.
Tata in March announced that it no longer saw a way to operate profitably in the U.K. and would consider selling the business, which includes the integrated Port Talbot works, the U.K.’s largest steelmaking facility. Tata wants to divest the business as soon as possible.
Koushik Chatterjee, Tata Steel Ltd. corporate and finance group executive director, said the company is pleased with the responses it has received so far. He added that executives, in conducting the initial review, weighed input from the U.K. government.
“We believe that the bids being taken forward offer future prospects of sustainability for the U.K. business as a whole. The sales process will continue as announced earlier in an expedited and robust manner to deliver greater clarity for all key stakeholders such as employees, customers and suppliers,” he said.
Tata didn’t disclose the names of the bidders. However, two that have confirmed their interest in the business are Excalibur Steel, a management group hoping to buy out the operation, and metals trading firm Liberty House.
It wasn’t clear whether their offers were among those that advanced to the next stage of consideration, according to The Wall Street Journal.
Meanwhile, The (India) Economic Times reported that debt-laden JSW Steel had put down an offer for the business.
"As part of company's growth strategy, the company evaluates several opportunities including the current opportunity of UK steel facilities," a JSW Steel spokesperson told the newspaper. "It is premature to add any further at this stage."
Additionally, India’s Mint business newspaper reported that Hebei Iron & Steel was said to be interested, although the report wasn’t clear whether it had submitted an offer and whether it had been accepted.
Another company reportedly interested in the business is America’s Nucor Corp., according to The (London) Telegraph.
Nucor, however, declined comment.
“We do not comment on our potential involvement in any acquisition activity,” a Nucor spokeswoman said in a statement to AIST’s Steel News.
