Liberty regrets Tata’s pause in sale of assets

LONDON : Liberty House, one of the frontline bidders for Tata Steel’s assets in Britain, has said it is disappointed that the sell-off process had been paused by

LONDON : Liberty House, one of the frontline bidders for Tata Steel’s assets in Britain, has said it is disappointed that the sell-off process had been paused by the company, and feared it would lead to more uncertainty over a longer period.

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Tata Steel announced the pause on Friday following a meeting in Mumbai between Britain’s Business secretary Sajid Javid and senior Tata officials. Tata said it was exploring strategic alternatives including a possible joint venture with the German Thyssenkrupp AG.

A spokesman for Liberty said: “This is sad and frustrating news for the UK steel industry because the sector needs a fresh start and we fear this decision will simply deliver more uncertainty over a longer period”.

“From our own point of view it’s disappointing that, in the short term, we will not be able to apply our Greensteel strategy on the scale which would have truly evolved and transformed Britain’s steel and engineering sector. We will continue to pursue our Greensteel vision to deliver an integrated value- added steel business that is both financially strong and built from renewable sources of energy and steel”.

Reiterating the government’s commitment to support to potential buyers, Javid said: “The past few months have been a very uncertain time for Tata UK steel workers, particularly at Port Talbot. So Tata’s news that they intend to explore strategic alternatives including a possible joint-venture with Thyssenkrupp AG is encouraging, as is the fact that they have decided to separately sell their specialty steel and pipe businesses ”.

The announcement caused Tata Steel’s shares to surge 2.7% to ₹327.25 on the Bombay Stock Exchange on Monday.