In a statement, Tata said it has signed a letter of intent with Greybull to enter into exclusive negotiations for the business, which includes its Scunthorpe Works in the U.K.; mills in Teesside, England, and northern France; an engineering workshop and a design consultancy in the U.K.; and associated distribution facilities.
 
It also includes Tata Steel’s Scottish mills in Dalzell and Clydebridge, which are being mothballed.
 
"This is an extremely critical time for the whole industry, and we have been working hard to explore all options that could provide a future for the Long Products Europe business," said Karl Koehler, chief executive of Tata Steel’s European operations.
 
“We will now move into detailed negotiations with Greybull Capital. It is too early to give any certainty about the potential outcome of these discussions. We will continue to work closely with our trade unions and works councils and will communicate any relevant news to employees on an ongoing basis."
 
The company has been trying to sell the business and had been in talks with industrialist Gary Klesch to sell the Scunthorpe Works. Klesch, however, broke off discussions with Tata, citing a lack of government support.
 
In October, Tata announced it was restructuring the business, closing a coke oven and plate mills at Scunthorpe, Dalzell and Clydebridge and laying off approximately 1,200 people. 
 
The Reuters news service reported that a deal between Tata and Greybull was probably worth less than 500 million pounds, and that the buyer was not likely to take on any debt.
 
In a statement to Reuters, Greybull confirmed that has signed the letter of intent with Tata Steel, but cautioned that nothing has been finalized.
 
"Whilst this is an important milestone, much work remains to be done to reach a successful outcome,” the firm said.