Tata Steel to Split From U.K. Pension Fund
05/18/2017 - Tata Steel said it has reached an agreement in principle to sever ties with its U.K. pension fund, a move that if finalized would remove an obstacle to possible a merger with thyssenkrupp’s steelmaking operations.
In reporting its first quarter results, Tata said it has agreed to pay GBP 550 million, or about US$711.9 million, into the fund and give it a 33% equity stake in its U.K. business.
The pension fund, and the liabilities that come with it, have been a hurdle to a possible tie-up between Tata U.K. strip business and thyssenkrupp’s steel division in Europe. The Guardian newspaper said that a deal could now be struck by the end of June, citing analysts from Berenberg.
The Guardian has more on the story here.
