Tata Steel seeks European joint venture with Thyssenkrupp

Tata Steel employs 11,000 staff in the UK.

However, it was not immediately ascertained whether they will go ahead with their sale plan of the United Kingdom business.

The firm has been considering seven bids for its United Kingdom assets since putting them up for sale in March, citing a global oversupply of steel, cheap imports into Europe, high costs and currency volatility.

But he stressed that any agreement, especially about the inclusion of the United Kingdom business in the joint venture, depended on talks with the British and Welsh governments and trade unions, and on resolving issues about pension liabilities.

The new plan would see Tata sell it’s South Yorkshire-based Speciality Steels business and the Hartlepool pipe mills which have received interest from several bidders. “However, It is now absolutely critical that Tata Steel and the UK Government come forward with a specific timetable”.

However, Tata Steel on Friday had cautioned that there no guarantee that the company will find success in forging tie up with companies for its entire European business.

The British government insists that its pension and equity stake for Tata Steel U.K.’s biggest operation in Port Talbot, South Wales, is still on the table.

Britain’s Business Secretary Sajid Javid, center, leaves after a meeting with Tata Steel executives amid reports that the Indian conglomerate is prepared to sell some of its United Kingdom plants, in Mumbai, India, Friday, July 8, 2016. The Tatas have prospected several options after announcing a decision to divest the United Kingdom steel unit.

Mumbai: The UK-based commodity-trading firm Liberty House Group, that had formally submitted the first bid for some of Tata Steel Ltd’s UK assets, said it will continue discussions with Tata Group about potential acquisition even as it is disappointed with the delays. The Board continues to support the business so that Tata Steel Europe can secure the supply chain to customers of the premium steel products they demand and maintain strong relationships with other stakeholders.

Hopes faded for a sale of Port Talbot after the European Union referendum result, although some of the bidders had already expressed concerns about the sluggish pace of the sale process before June 23.

“In addition, the security of the steelworkers’ pension fund should not be used as a bargaining chip between competing potential buyers and steelworkers should not be expected to in effect subsidise a sale by taking a cut to their own pension savings”.

“The government will have to acquire additional trade negotiation resources”, Mr Hammond told a committee of MPs.