[dropcap color=”#008040″ boxed=”yes” boxed_radius=”8px” class=”” id=””]T[/dropcap]ata Steel on Monday announced an agreement to offer its long products Europe business to investment firm Greybull Capital to get a “nominal” consideration. The long merchandises Europe business employs 4,800 individuals — 4,400 in Britain and 400 in France. It is alleged that Tata Steel’s mis-adventure is costing this $100 billion dollar company close to $12 billion.
“The sale for a nominal consideration, could maintain exchange for Greybull Capital taking on the whole of the business, including assets and applicable liabilities, and securing an appropriate financing package,” the firm said in a statement. The Guardian today confirmed that the sale was for a nominal amount, an effort to save the jobs and keep the British Steel industry competitive in the face of low cost Chinese imports.
“The deal will likely be finished once a number of outstanding conditions are worked out, including transfer of contracts, certain Government acceptances as well as the satisfactory completion of financing arrangements.”
[dropcap color=”#008040″ boxed=”yes” boxed_radius=”8px” class=”” id=””]L[/dropcap]ong products include billets, rails and wire rods used by construction, engineering, energy and automotive industries. Level products include coils, and heavy plates used for construction, heavy machines, pipes, tubes, objectives, packaging and appliances.
“This sale is the best possible results for employees that have worked relentlessly to ensure the business’s survival, and helped to ensure it is appealing to a potential buyer,” said Bimlendra Jha, executive chairman of the stand-alone long merchandises Europe company.
The pact considered a crucial landmark on the road toward continuing steelmaking in Scunthorpe and steel processing in other locations in britain and France, and follows an accelerated procedure for discussions between Greybull Capital and Tata Steel UK.
The sale covers several UK-based assets including two mills in Teesside, the Scunthorpe steelworks, an engineering workshop in Workington, a design consultancy in York, and associated supply facilities, as well as a mill in northern France.
“This trade will offer you a future for long Products Europe company and its 4,400 employees.”
(IANS)
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