Tata Steel sells off Long Products business in Europe

Tata Steel has sold its Long Products business in Europe to investment firm Greybull Capital. India’s biggest steel manufacturer is not exiting the UK after struggling for over a decade.

Greybull Capital will take over the whole business, including assets and liabilities, and secure a funding package of 400 million pounds. The deal financing, provided principally by a combination of banks and Greybull Capital shareholders, will be available to fund working capital and future investments in the Long Products Business.

Greybull Capital says the deal will be completed within eight weeks, and is subject to financing arrangements and cost agreements.

Tata Steel is $4 billion in debt on its UK balance sheet. Last year the company wrote off Rs. 5000 crores related to the long products business.

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