In a setback to Tata Steel, its deal to sell Dutch unit to Sweden's SSAB may have come unstuck.
“We have carefully evaluated Tata Steel IJmuiden and have concluded that an acquisition would be difficult for technical reasons. We cannot be sufficiently certain that we could implement our industrial plan with the preferred technical solutions as quickly as we would wish. We cannot align Tata Steel Ijmuiden with our sustainability strategy in the way desired,” says Martin Lindqvist, President and CEO at SSAB, said in a statement on January 29.
It was in November that Tata Steel had confirmed the talks to sell the unit, based in Ijmuiden in the Netherlands. This was a fresh attempt from India's largest steelmaker to find a solution to its troubles in Europe, more than a year after a merger with Germany's thyssenkrupp was blocked by European Commission.
Apart from the Dutch unit, Tata Steel's European operations include the facility in the UK. The company was hoping to sell the Dutch unit, among the most profitable steelmaking sites in Europe, to also turnaround the UK operations.