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U.K. Government Might Consider Investment in Tata Steel Sale
04/12/2016 - The U.K. government might “co-invest” with whomever acquires Tata Steel’s U.K. operation, according to reports.
Speaking during an emergency Parliament debate called to discuss the future of the U.K.’s steel industry, Member of Parliament and Business Secretary Sajid Javid said that the government was working hard to find a buyer for the operation and might participate in a deal “on commercial terms,” the BBC reported.
Pressed to clarify what he meant by co-invest, he said, "The key point is that any co-investment would have to be on commercial terms. Investment can take a variety of forms; for example, it could be debt,” he said, according to the BBC.
Tata Steel on 11 April initiated a formal sales process for the business, which includes its integrated Port Talbot works. The facility is the largest in the U.K. Tata is divesting its U.K. assets because it no longer sees a profitable future for them on account of high energy costs and competition from low-cost imports, among other factors.
The decision has left the future of the U.K.’s steel industry, along with thousands of jobs, in doubt.
The (London) Telegraph newspaper reported that Tata was preparing to close Port Talbot last month, but kept it open after the U.K. government intervened.
Pressed to clarify what he meant by co-invest, he said, "The key point is that any co-investment would have to be on commercial terms. Investment can take a variety of forms; for example, it could be debt,” he said, according to the BBC.
Tata Steel on 11 April initiated a formal sales process for the business, which includes its integrated Port Talbot works. The facility is the largest in the U.K. Tata is divesting its U.K. assets because it no longer sees a profitable future for them on account of high energy costs and competition from low-cost imports, among other factors.
The decision has left the future of the U.K.’s steel industry, along with thousands of jobs, in doubt.
The (London) Telegraph newspaper reported that Tata was preparing to close Port Talbot last month, but kept it open after the U.K. government intervened.
