Tata Steel UK in pact with Greybull Capital to sell long products Europe busines

Tata Steel UK in pact with Greybull Capital to sell long products Europe busines

Tata Steel UK in pact with Greybull Capital to sell long products Europe busines

Tata Steel UK has signed an agreement to sell its long products Europe business to Greybull Capital for a nominal consideration. The sale to Greybull would be in exchange for Greybull taking on the whole of the business, including assets and relevant liabilities, and securing an appropriate funding package, Tata Steel said.

Greybull Capital is a family investment office with significant investments in sectors including aviation, pharmaceuticals, semiconductors, energy, industrials, retail and leisure across the UK, mainland Europe and the US. Its UK portfolio includes the Monarch Group, My Local, Plessey Semiconductors and Arc Specialist Engineering.

The sale covers several UK-based assets, including the Scunthorpe steelworks, two mills in Teesside, an engineering workshop in Workington, a design consultancy in York, and associated distribution facilities, as well as a mill in northern France.

The deal would be completed once a number of outstanding conditions have been resolved, including transfer of contracts, certain government approvals and the satisfactory completion of financing arrangements. The long products Europe business employs 4,800 people, including 4,400 in the UK and 400 in France, the Indian steel giant said.

The agreement follows an accelerated process of negotiations between Tata Steel UK and Greybull Capital who have worked constructively together. The agreement is an important milestone on the road towards continuing steelmaking in Scunthorpe and steel processing in other locations in the UK and France.

“Under these current challenging market conditions in Europe with the soaring levels of imports from China, we are happy that Tata Steel UK and Greybull Capital have entered the final stage of completion of the sale of shareholding in Long Steel UK. This transaction will offer a future for the long products Europe business and its 4400 employees in the UK,” Tata Steel Europe operations chief executive Hans Fischer said.

In another development, Tata Steel UK has appointed KPMG as adviser for its sale.
“Following the recent advice from the Tata Steel Board to evaluate all options for the portfolio review of Tata Steel UK, the Board of Tata Steel Europe at its meeting held on March 31, 2016, reviewed several options and, keeping in view the interest of all stakeholders, has decided to commence the process of divestment of its entire shareholding in its subsidiary Tata Steel UK.

DH Newsletter Privacy Policy Get top news in your inbox daily
Comments (+)