London: Tata Steel is set to freeze auction of its UK steelworks while it assesses the fallout of the Brexit vote, a report said on Sunday.
The Mumbai-based firm had announced plans to auction its Port Talbot steelworks in Wales earlier this year. However, The Sunday Times reported that the move has been put on ice as it assesses the fallout of the Brexit vote.
“The Indian giant will ‘pause’ the sale amid uncertainty over the impact of the decision to leave the EU,” the newspaper quoted sources as saying. The board is yet to make a formal decision but is under less pressure to sell after a jump in steel prices, which has cut losses at the south Wales site, the report said. Tata will reportedly stall the auction to await the outcome of a UK government deal to cut its £14 billion pension liabilities as well as talks on EU trade deals.
