So-called ‘Brexit’ is delaying the next stage in selling Tata Steel’s UK operations, claims a report by the BBC.

While bids from Liberty Steel and the management buy-out team Excalibur are still on track, other possible buyers might be considering withdrawing from the process.

The BBC report claims that no bidders have yet pulled out because of the UK decision to leave the EU, but a shortlist of bidders, which was expected this week, is not likely to materialise.

According to the BBC, it’s not just the companies that might be reconsidering their position. The banks backing potential bidders will be looking at whether ‘Brexit’ changes the nature of the investment and the risk involved.

The EU accounts for 69% of Welsh steel exports.

Roy Rickhuss, general secretary of the Community union, says that the referendum result and the current Government turmoil had placed new question marks over Tata Steel’s sale process. He argued that trade unions must understand what actions Government will take to safeguard the future of UK steelmaking.

Speaking to the Belfast Telegraph, Mr Rickhuss said, “During this period of economic uncertainty, it would be a disaster if our steel industry was allowed to crumble.”

Following Tata Steel’s decision to sell its British operations up for sale the possibility of mergers in the European steel industry have been mooted.

ThyssenKrupp’s CEO, Heinrich Hiesinger, said it was unclear whether, how or with whom the European steel market would consolidate, according to a report by Reuters.

Source: BBC News, Belfast Telegraph, Reuters