UK Business Secretary Sajid Javid has announced that steel-maker, Tata is ready to start selling the unprofitable UK plants. Mr Javid named Liberty Steel as among the parties interested in the deal.
Tata Steel To Officially Begin Selling Its Loss-Making UK Plants
Mr. Javid said the Indian meeting was positive and was a clear demonstration that Tata is committed to being a responsible company.
Meanwhile, it is yet to be confirmed whether Liberty Steel will actually participate in the takeover deal. In a statement, Liberty boss Sanjeev Gupta said that plans for buying out Tata plants in the UK were not yet clear and that acquiring the unprofitable business would be a daunting prospect.
Tata insiders have revealed that the company is looking for a quick sale. Even then, Mr Javid did not reveal the timeframe within which he was looking to make the sale.
He further indicated that he was expecting other companies interested in the deal to come forward as soon as the official sale transaction begins.
Mr. Javid met Tata chairperson Cyrus Mistry for the first time following the announcement of the sale one week ago.
The meeting followed pressure from the steelworkers’ union who demanded to know the timeframe for the sale to ensure it was not rushed.
The sectary general of the steelworkers’ community, Roy Rickhuss, said Mr. Javid had phoned him following his meeting with Mr. Mistry in Mumbai.
Rickhauss said, ‘I appreciate that the secretary of state relayed news of the positive conversation he had with Tata. I am glad that they discussed the issues I had raised with him earlier before flying to India.”
He added, “I am encouraged to know that Tata are keen on being a responsible seller and allowing enough time to find a new commercial operator.”
Ready to take pay cuts
Stephen Kinnock, MP for Aberavon asserted the importance of allowing enough time for the deal.
Speaking to the BBC, Mr. Kinnock said he had the impression that Tata was looking for a quick deal.
Union members at the Tata site in Scunthrope are voting to take a 3% cut on their pay and to have a pension reduction in an effort to turnaround the prospective sale to investment company Greybull Capital.