India-headquartered steel giant Tata Steel has announced that it would explore strategic alternatives for its UK business, including the potential sale of the business as a whole or in parts. The company and its advisers then contacted around 200 potential financial and industrial investors around the world to explore their interest in the business. The company has also deeply engaged with the governments of the UK and Wales at every stage of the process.
According to the company’s statement, the board of Tata Steel has decided to also look at alternative and more sustainable portfolio solutions for its European business. Consequently, Tata Steel has now entered into discussions with strategic players in the steel industry, including Germany-based steelmaker Thyssenkrupp AG. Discussions have been initiated to explore the feasibility of strategic collaborations through a potential joint venture. However, the talks are currently at a preliminary stage and there can be no certainty of a transaction as the outcome depends on consultation and negotiations with various stakeholders.