The BBC news website has just reported that the British Government will take a 25% stake in any rescue deal for Tata Steel UK, following the recent announcement by the Indian parent that it plans pull out of the UK market in response to the damaging effects of cheap Chinese steel imports, high energy costs and punitive business rates.
A support package is in preparation and the money being made available will be offered on commercial terms and should not be construed as nationalisation or part nationalisation. The government has no intention of taking control of the business, according to Business Secretary Sajid Javid.
While the British steel industry awaits the outcome – whatever it might be – with bated breath, a management buy-out of Port Talbot led by Stuart Wilkie, managing director of Tata's strip products division, was mooted earlier this week.
It is also known that Liberty Steel, which recently signed on the dotted line to buy two Tata Steel UK plants in Scotland, is also interested in elements of the Port Talbot business.
So far, however, no progress has been made on the sale of the business.