Tata Steel Ltd has put its assets on in UK temporarily pending the consequences of voting for Britain to leave the European Union (EU), two people familiar with the development said Thursday.
In March, Tata Steel decided to put all its UK business for sale in the face of falling steel demand and prices, some nine years after it was bought Corus Group Plc. for $ 12.9 billion in the largest acquisition by an Indian company.
Tata Steel
Potential buyers said Tata Steel UK surprise vote to leave the EU raised uncertainties about the viability of their operations in the country, Bloomberg reported. At least four shortlisted bidders withdrew from the process, according to one of the persons mentioned by Bloomberg.
It is expected that Secretary Sajid Javid Business to meet with representatives of Tata Steel on Friday to discuss issues related to the sales process.
The sale of the UK assets is critical for Tata Steel, which reported a loss of Rs.3,213.76 crore in the three months ended in March, as he scored the value of some of its European assets. A quick decision on these assets is crucial for the company, which has been losing £ 1 million a day on its assets in the UK.
