The Tata Steel UK is planning to sell its speciality steel business to Liberty House group. As per reports a deal for GBP 100 million was done between two groups.
The Tata Steel company has today said that its British unit has signed a deal to sell its speciality steel business to Liberty House Group for 100 million pounds. The agreement between two companies covers several assets including the electric arc steelworks and bar mill at Rotherham.
As per the company, the Speciality Steels employs about 1,700 people directly, who male steel for automotive, aerospace, oil and gas businesses. Both companies had entered into talks in November last month as the Indian company is trying to sell its its money-losing assets and restructure European operations.
Speaking on the development, the Tata Steel UK’s CEO Bimlendra Jha said that this is good news
for Specialty Steels and for the core business of the group in the UK. Speaking about Specialty Steels, he added that this was an important step in securing a future for the business under new ownership.
Jha further said that it was also an another important step forward in realising a more sustainable future for the supply chain in the UK.
In the meantime, Moody’s Investors Service has said that the Tata Steel’s operative performance has improved on the back of government steps like import curbs. It also said that the company’s greenfield expansion in the country but has kept its ratings unchanged.
The agency had last year, downgraded credit ratings of the company to Ba3 from Ba1 on a weaker operating performance in its important operating markets of India, South-East Asia
and Europe due to persistent weak steel prices.
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“Tata Steel Ltd (Ba3 negative) and Tata Steel UK Holdings Limited’s (TSUKH, B3 negative) ratings remain unchanged at this point in time. Although improving, credit metrics have yet to catch up with their respective rating categories,” Moody’s said in a statement.
(With inputs from PTI)