Tata Steel Europe has initiated a fresh attempt to sell five non-core businesses ahead of its much awaited impending joint venture with German steel and engineering giant Thyssenkrupp.
The units - in the UK, Turkey, Germany, Sweden and Canada - employ around 1,100 people and supply niche products to metal industries.
In a late evening communication to the stock exchanges, Tata Steel said the potential sale would help the company to focus on core strip products and markets.
These potential sales will follow the divestment of other non-core businesses in recent years, such as Long Products Europe and Speciality Steels.
"Under new ownership, these former Tata Steel businesses have found focus to secure a more sustainable future.
"In turn, these divestments have allowed us to focus resources on making significant improvements to the core strip business, as part of our ambition to develop the most sustainable steel business in Europe focused on our Ijmuiden and Port Talbot value chains," Hans Fischer, CEO of Tata Steel's European operation, said in a statement.
Businesses which are being put on the block are Cogent, a manufacturer and processor of electrical steels based in the UK, Canada and Sweden; Kalzip, an aluminium roofing and cladding business based out of Germany; Firsteel, a processor of coating kitchenware in the UK; Tata Steel Istanbul Metals, a steel coil coating company in Turkey; and Engineering Steels Service Centre, a processor of engineering steels in UK.
The potential sale follows a recently conducted detailed portfolio review of all its businesses to assess strategic fit and future potential. The development also comes ahead of the proposed joint venture between Tata Steel and Thyssenkrupp where both the companies will consolidate their European steel assets to achieve a greater synergy and economy of scale in a commodity business.
Bhushan Power case
Tata Steel has moved the National Company Law Appellate Tribunal (NCLAT) challenging the order of a lower tribunal that allowed a competing bid for bankrupt Bhushan Power and Steel to be considered. The matter is expected to come up before hearing on Wednesday.
Delhi bench of NCLT in April had ordered committee of creditors of Bhushan Power & Steel to consider the bid of UK-based Liberty House, which is understood to have made a higher offer than Tata Steel.
The Indian company was the highest bidder when Liberty's plan was not considered on account of late submission. Liberty House challenged the decision of CoC at NCLT which had allowed the plea and directed CoC to complete its resolution proceedings by June 23.
Source: The Telegraph