Greybull expected to buy parts of Tata Steel today

Turnaround specialist Greybull to buy parts of Tata Steel’s UK business, is expected to be confirmed today.

Following the recent statement from the First Minister of Wales, and crisis meetings regarding the end of the UK steel industry, business secretary Sajid Javid said last week that the formal process of selling the empire has begun today.

Greybull, a family run investment firm, are to buy parts of Tata Steel’s UK business, which is expected to be announced later today. Greybull rescued Monarch Airlines just hours before its collapse into administration, by axing 700 jobs and introducing pay cuts of 30% for pilots.

Greybull entered talks with Tata in December to buy its Scunthorpe plant, which would safeguard more than 4,000 jobs. Workers have been asked to accept pay cuts and less generous pension arrangements.

A spokesman for the firm declined to comment.

The company announced last month that it was looking to sell off all its UK operations, which would put 40,000 British jobs at risk, including 15,000 workers and around 25,000 jobs in the supply chain.

Commodities group Liberty House, who recently bought Tata’s Scottish steel plant, is another potential bidder, along with Thyssen Krupp, Germany’s industrial giant.

Owner of the company, Sanjeev Gupta, has expressed interest in remodelling Port Talbot by producing steel through the use of electric arc furnaces, to take advantage in recycling opportunities He also expressed his desire to save jobs. However, he said that the UK’s high energy costs would have to be “rectified” by the Government.

Mr Gupta said: “There are issues to resolve which will become more apparent as prospective buyers do their due diligence.

“As they do, we hope there will be an equitable solution for the industry.”

Tata Steel is currently losing over £1M a day, however advisors are confident that if full restructuring is implemented, the operations could be making £100M profit within 24 months.

 

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