Tata Steel agrees to sell speciality steel business to Liberty House
MUMBAI: Tata Steel signed a definitive agreement to sell its UK subsidiary's speciality steel business to Liberty House Group for 100 million pounds (about Rs. 839 crore), the company said in a regulatory filing on BSE on Thursday.
The deal covers several South Yorkshire-based assets including the electric arc steelworks and bar mill at Rotherham, Tata Steel said.
Speciality Steels directly employs about 1,700 people making steel for aerospace, automotive, and oil and gas businesses, it said.
Tata and Liberty House had entered into exclusive talks in November as the steelmaker seeks to offload its money-losing assets and restructure European operations.
Liberty House is owned by Indian-origin businessman Sanjeev Gupta, whose strategy is to recycle steel instead of making it fresh from blast furnaces. The speciality business can produce 1 million tonne steel from electric arc furnaces, which can be used in the automobile and aerospace industries.
The deal covers several South Yorkshire-based assets including the electric arc steelworks and bar mill at Rotherham, Tata Steel said.
Speciality Steels directly employs about 1,700 people making steel for aerospace, automotive, and oil and gas businesses, it said.
Tata and Liberty House had entered into exclusive talks in November as the steelmaker seeks to offload its money-losing assets and restructure European operations.
Liberty House is owned by Indian-origin businessman Sanjeev Gupta, whose strategy is to recycle steel instead of making it fresh from blast furnaces. The speciality business can produce 1 million tonne steel from electric arc furnaces, which can be used in the automobile and aerospace industries.
