Tata Steel's proposed sale of European long products business to Klesch comes unstuck
Resource from: Reuters Likes:178
Aug 19,2015
Tata Steel Ltd, India’s largest steel company by revenues, is no longer in talks with Switzerland-based Klesch Group for the sale of its European long products business and associated distribution facilities, according to a stock market disclosure.
The company, however, did not give any reason for the pull-out. But Gary Klesch, the billionaire promoter of Klesch Group, had said early this week that talks did not progress as the UK government failed to address the issue of cheap imports from China and a rise in energy costs to run the plants.
Tata Steel and Klesch Group had signed a memorandum of understanding for the sale of its European long products business last October and the deal was expected to be completed in the first half of 2015.
The deal included the sale of UK-based assets including Tata Steel's Scunthorpe steelworks, mills in Teesside, Dalzell and Clydebridge in Scotland, an engineering workshop in Workington and a rail consultancy in York, besides other operations in France and Germany.
Meanwhile, Tata Steel has hived off the long products business, with the associated distribution facilities, as a separate wholly-owned subsidiary of Tata Steel UK Ltd.
“With the hive down of the long products into a wholly-owned subsidiary, the new structure will enable the company to evaluate and execute strategic options in the future,” Tata Steel said.
The firm's long products business in the continent comprises a wide range of standard and differentiated products including sections, rails, wire rods, special profiles and plates for the rail, yellow goods, energy and construction sectors.
It employs around 6,500 people of the total 30,500 people working for Tata Steel in Europe and currently produces around 3 million tonnes with the capacity to produce up to 5 million tonnes, annually.
Tata Steel catapulted to become the fifth-largest steel producer with large operations in Europe when it acquired UK's Corus for over $12 billion in 2007, in what remains to date the biggest overseas acquisition by an Indian company. However, as the global economy went into a tailspin with the financial crisis it had become an albatross around the neck of the Indian steel firm.
Tata Steel has invested £1.2 billion in its UK operations and trained 1,200 UK apprentices and graduates since acquiring Corus.
Founded in 1990, Geneva-headquartered The Klesch Group is a global industrial commodities business, with three divisions specialising in the production and trading of chemicals, metals and oil. The firm has revenues in excess of
(Reuters)
【CBCC News Statement】
1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
Previous Zero-Max Load Adaptors Connect Pump Impellers in Underwater Applications
Next Aug 17 Bearing Steel Price in Different Regions of China
Next Aug 17 Bearing Steel Price in Different Regions of China
BRIEF INTRODUCTION
Cnbearing is the No.1 bearing inquiry system and information service in China, dedicated to helping all bearing users and sellers throughout the world.
Cnbearing is supported by China National Bearing Industry Association, whose operation online is charged by China Bearing Unisun Tech. Co., Ltd.
China Bearing Unisun Tech. Co., Ltd owns all the rights. Since 2000, over 3,000 companies have been registered and enjoyed the company' s complete skillful service, which ranking many aspects in bearing industry at home and abroad with the most authority practical devices in China.
