Despite UK newspaper reports to the contrary, Tata Steel insists that it is still in ‘constructive’ talks with German steelmaker ThyssenKrupp over what The Hindu Business Line calls a ‘strategic collaboration including merger of its European operations’.
However, Tata said there was no guarantee that discussions between the two steel giants would result in a deal and that nothing was certain until a definitive agreement was reached.
Recent moves by Tata to cut its losses in the UK include selling it’s long products business to Greybull Capital and its speciality steel operation to Liberty House, the latter deal for the sum of £100 million.
The big stumbling block has been the company pension scheme, although recent reports suggest that Tata’s UK employees are happy to ditch the existing pension scheme in favour of something ‘more competitive’, claims The Hindu Business Line.
Redundancies at the Port Talbot steelplant in South Wales have been avoided thanks to Tata announcing a £1 billion investment plan for the site spanning the next 10 years. The company also agreed to operate its existing blast furnace until 2021 and support staff by investing in skills to support future plant upgrades, automation and other digital initiatives.
Merger talks continue, claims Tata Steel.
Source: The Hindu Business Line