Tata Steel said it has signed a definitive agreement to sell Speciality Steel business in the UK to Liberty House Group for £100 million. UK Business Secretary Greg Clark said, "Acquiring Tata's Speciality Steels business in South Yorkshire and West Midlands, which manufactures high quality steel for some of the UK's world leading industries such as aerospace and automotive is a great opportunity for Liberty House. We want to work with the steel industry on proposals to transform and upgrade their sector as part of the modern Industrial Strategy so we can build on our strengths and extend excellence into the future."
UK-based Liberty House Group, led by executive chairman of Indian-origin Sanjeev Gupta, said the deal secures the future of around 1,700 jobs directly, and thousands more in the supply chain and regional economy. The sale comes after an extensive due diligence period, after the parties entered exclusive discussions last November. "This is good news for Speciality Steels and for Tata Steel's core business in the UK. Like our former Scunthorpe-based Long Products business which we sold last year, we will be handing over a business which has been transformed following difficult decisions to restructure and refocus on higher-value markets," said Bimlendra Jha, CEO of Tata Steel UK.
The deal will make Liberty House, one of the largest steel and engineering employers in the UK, with over 4,000 workers at plants located across Britain.
Tata Steel turns the corner
Meanwhile, Tata Steel has turned the corner by posting a consolidated net profit of £23.14 million for the December quarter as against a consolidated net loss of £274.77 million in the corresponding quarter of the previous fiscal.
