Tata Steel pauses sale of UK assets on Brexit uncertainty, looks for partner

[Showrav.Yazdani]

Tata Steel has put the process of selling its major British assets on hold because of the uncertainty caused by the Brexit vote and surrounding pension liabilities and will now also look at forming a joint venture, the company said.

Tata Steel put its British operations up for sale in March, including its Port Talbot plant in southern Wales, threatening thousands of jobs, but an industry source told Reuters on Thursday that the sale had been put on hold.

The firm said on Friday the June 23 referendum, when Britons voted to leave the European Union, and issues around the pension scheme had prompted a rethink.

"The bids have also been reviewed in the light of the uncertainties caused by the UK referendum and the outcome of the UK Government's consultation on the British Steel Pension Scheme," the firm said in a statement.

"Consequently, Tata Steel has now entered into discussions with strategic players in the steel industry, including Thyssenkrupp."

Germany's biggest steelmaker Thyssenkrupp has said it wants to play a role in any consolidation of the European steel market, which is saddled with excess production capacity and a weak demand outlook.

Tata Steel said it will also begin separate processes for the potential sale of its Speciality Steels business and the northern English Hartlepool pipe mills except for its 20-inch Tube Mill.