India Inc India Inc: Friday, 10 February 2017 05:23

Tata Steel sells unit to UK group

Tata Steel has announced that it has signed a definitive sale agreement to sell its Speciality Steel business in the UK to Liberty House Group for a total consideration of £100 million.

UK-based Liberty House Group, led by Indian-origin executive chairman Sanjeev Gupta, said the deal secures the future of around 1,700 jobs directly, and thousands more in the supply chain and regional economy.

“Acquiring Tata’s Speciality Steels business in South Yorkshire and West Midlands, which manufactures high quality steel for some of the UK’s world leading industries such as aerospace and automotive is a great opportunity for Liberty House. I look forward to hearing more about their expansion plans which secures skilled jobs at the business into the future,” said UK business secretary Greg Clark.

The sale follows an extensive due diligence period, after the parties entered exclusive discussions in November last year.

“This is good news for Speciality Steels and for Tata Steel’s core business in the UK. Like our former Scunthorpe-based Long Products business which we sold last year, we will be handing over a business which has been transformed following difficult decisions to restructure and re-focus on higher-value markets,” said Bimlendra Jha, CEO of Tata Steel UK.

India Global Business’ has been tracking this issue

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