MOSCOW (Sputnik) — Tata Steel which employs over 10,000 people in England and Wales has launched negotiations with strategic players in the industry, including the German company Thyssenkrupp, on merger of European steel business.
On March 30, Tata Steel announced its intent to sell all or part of the UK business but it has been hampered by the British steel pension fund and its deficit of over $900 million. The United Kingdom's decision to leave the European Union on June 23 added further complications.
"Taking the above issues into account [Brexit and consultations with the pension fund], the Board of Tata Steel has decided to also look at alternative and more sustainable portfolio solutions for the European business," the company said in a statement Friday.
The United Kingdom's steel industry has faced significant hardship over the past year amid declining commodity prices and growing competition.
