Brexit has led to lot of uncertainty
July 11, 2016: Tata Steel has put on hold its plan to sell its UK assets in the wake of Brexit and the uncertainty surrounding rules and regulations.
The company is planning to postpone the sale until clarity emerges in UK regarding new rules. The board plans to meet on Friday to ensure UK authorities are committed to offering incentives to potential buyers.
In March, Tata Steel decided to put its entire UK business on sale in the face of a slump in demand and prices, nine years after it bought Corus Group Plc. Corus was the biggest acquisition by an Indian company.
Brexit has brought uncertainties into the sale process. Many of the shortlisted bidders pulled out due to uncertainty in the wake of Brexit, Bloomberg reported.
UK business secretary Sajid Javid is expected to meet Tata Steel representatives on Friday to discuss issues related to the sale process.
Europe contributes significantly to Tata Steel UK’s total steel sales and changes in trade policies between the UK and the EU could have an impact on its future operations.