Tata Steel to not exit UK, may consider sale of specialty units

After months of negotiation with worker unions and the UK government, Tata Steel has decided to cancel the sale of its assets in the country.Following a board meeting, the company has decided to not divest majority of its UK steel business because of the Brexit uncertainty, agencies said, adding that it is in preliminary talks with Germany's Thyssenkrupp for a joint venture.The success of the joint venture depends on the outcome of talks with British trade unions, government policy support and developments on workers' pension schemes, the company said.A sale of the speciality steel business -- such as the Hartlepool Pipe Mill unit -- within the UK operations will be considered.The company intends to cut costs by 100 million euros as it goes ahead with continuing business in the UK.Tata had announced the sale of its entire UK business in March this year, which employs about 15,000 workers. The business is part of the Corus acquisition that Tata undertook in 2007.Back then, the company said that a turnaround plan was 'unaffordable' -- its key Port Talbot was said to be losing 1 million pounds everyday -- but the Brexit vote put a cloud on the sale plan, not least because a cheaper pound may now help the company plan a recovery path.The decision to cancel the sale was announced after hectic parleys between the UK government, union representations and the company management. UK business minister Sajid Javid was in Mumbai today to discuss the course of action.