Thu, 31 Mar 2016 | BUSINESS SALE
According to Business Minister Anna Soubry, the government will be considering “all options” when it comes to finding a buyer for Tata’s Port Talbot steel plant.
Originally, some analysts and media sources believed this would mean, at least in the short term, nationalising the struggling steel-making operation. However, Prime Minister David Cameron and Secretary of State for Business, Innovation and Skills Sajid Javid were both quick to dismiss the idea of nationalisation.
However, with around 3,000 direct jobs at stake, as well as an estimated 25,000 more within Tata’s supply chain, it’s clear that something must be done sooner rather than later. Added to this is the fact that the Port Talbot operation is so energy intensive that it would require significant investment to turn its fortunes around. Tata insiders estimate this to be in the region of £2 billion, with no guarantees that the potential returns would be anywhere near as generous as this figure.
One often mooted buyer that may be interested in Port Talbot is Germany’s ThyssenKrupp, but with European steel in a slump, the company is itself currently under intense pressure. Even potential Russian or Chinese buyers would be put off by the higher costs and overcapacity in Europe, according to some analysts.
On the plus side in terms of finding a buyer, there have been reports that Tata now values its British steel operations at “almost zero”. Furthermore, a company source is reported to have said that Tata was even prepared to “give it away for nothing”.
Nevertheless, Tata has apparently written off around £2 billion from the value of its UK assets. This has rendered them effectively useless. What's more, Koushik Chatterjee, the finance director of Tata Steel, said that Port Talbot had become “quite a burden for the company”, with the board admitting “we can’t sustain this kind of exposure”.
For more on this story, see the blog Tata Steel puts UK business up for sale.
Fantastic growing embroidery and clothing printers company. This is a relocatable business opportunity. Extensive list of fixtures and fittings. Offers invited.
RELOCATABLE
Upmarket restaurant and play centre based in Manchester. Affluent trading area. Beautifully presented throughout. Management team in place. Newly equipped in 2018. Offers invited.
Popular restaurant located in Media City, Manchester. Located close to BBC offices. Good public transport links. Offers invited.
|
16
|
|
Jul
|
Farsound Aviation sold to AGIC for £115 million | BUSINESS SALE
A supply chain management company operating in the aviation ...
|
15
|
|
Jul
|
Specialist engineering firm forced to appoint administrators | ADMINISTRATION
Rail contracting company Aspin Group Limited has been forced...
|
12
|
|
Jul
|
Irish mobile diagnostics firm snapped up by Blancco Technology Group | BUSINESS SALE
Blancco Technology Group, which provides a range of mobile d...
Sign up to receive our acquisition alert emails to get your FREE guide
|
26
|
|
Jul
|
Engineering firm Fairwood Fabrications goes into liquidation | ADMINISTRATION
An engineering firm that was a key figure in the industry, s...
|
26
|
|
Apr
|
Excalibur to prepare MBO deal for Tata Steel | MBO/MBI
Tata Steel’s Strip Products UK hub director Stuart Wil...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources