Tata Steel denies potential break-up

Steel worker’s union Community has called for clarity over the ongoing sales process

Tata Steel has rebuked reports that it is considering selling its UK business off in parts to separate bidders, a move the company had previously rejected.

The Indian steel company is currently seeking potential bidders for its entire UK portfolio and said it is progressing seven expressions of interest it has received for the whole of its UK business.  

It has been reported in the Financial Times that the company is discussing a deal with government to keep its UK business rather than sell it off, which would save the jobs of 11,000 workers at its Port Talbot steelworks. Tata has said it requires a loan worth up to £1 billion and a restructuring of the British Steel pension scheme to remove billions of pounds from its liabilities if that deal is to go ahead.

However,  reports also indicated this week that Tata Steel has been in talks with potential bidders to buy two of its divisions – speciality steels and pipeline tube – if it remains in the UK.

The news prompted the steelworker’s union Community to voice serious concerns over the sales process, which has been running since March. A statement from Community said: “Tata made it clear they no longer wanted to keep their UK businesses. The government stressed the need for Tata to act as a responsible seller; however, it is now unclear whether Tata intend to sell the business at all. Since that first announcement, the trust and good will of Tata’s loyal workforce has been pushed to the limit.

“If Tata do indeed intend to retain the business, then they need not only to make this clear to their loyal workforce, but also lay out their long term plan for investment in steelmaking.”

Tata Steel UK refused to comment on "media speculation" about the break-up of the UK company and said: “As of today our priority remains selling the whole of the UK business to a single responsible buyer.”

Trade union Community added: “Today workers are reading in the media that Tata are now willing to accept bids for separate parts of the business, despite previously committing to selling the whole business as a going concern. If Tata are continuing with the sales process it is vital they provide bidders with the information and support they need to develop the best possible proposals to safeguard our industry.”