Tata Steel up 3% in talks to sell long products Europe biz

Moneycontrol Bureau

Shares of Tata Steel gained 3 percent intraday on Wednesday after the company’s subsidiary entered fresh negotiations to sell long products division in Europe. The move will allow partial deleveraging of the balance sheet and enhance profitability.

“Tata Steel UK, an indirect subsidiary company of Tata Steel Europe signed letter of intent with Greybull Capital to enter exclusive negotiations for the potential sale of its Long Products Europe business. The memorandum covers several UK-based assets including TS UK’s Scunthorpe steelworks, mills in Teesside and northern  France, an engineering workshop in Workington, a design consultancy in York and associated  distribution  facilities,” a company statement said. It also includes Scottish mills in Dalzell and Clydebridge which are currently being mothballed.Karl Koehler, Chief Executive of Tata Steel’s European operations, said that Tata Steel Europe has been a hugely  supportive  investor in the UK steel market,  having  invested  almost  1.5 billion pound in its operations. “Our aim is to make our European business globally competitive,” he adds. About 4700 people are employed at Long Products Europe and its distribution facilities. Tata Steel Europe employs about 30,000 people across Europe, including about 17,000 in the UK.At 14:52 hrs Tata Steel was quoting at Rs 264.15, up Rs 6.95, or 2.70 percent on the BSE.Posted by Nasrin SultanaFollow @NasrinzStory