Tata close to deal on UK steel
London: Tata Steel is believed to be edging closer to striking a new deal over the £15-billion pension pot that stands in the way of an agreement over of its UK steelworks, according to a media report on Sunday.
The Tata Group firm is understood to have opened talks with the UK’s Pension Protection Fund and the Pensions Regulator over an unort-hodox restructuring deal, which would see a merger of its European arm with Germany’s Thyssen-Krupp, The Sunday Times claimed.
An agreement could secure the immediate future of the Port Talbot plant in south Wales and its 4,000 staff members, plus other plants across the country which were put up for sale in March this year. The British Steel Pension Scheme is seen as the biggest obstacle to the merger.
The British newspaper claims new talks, which started last month, hinge on using a regulated apportionment agreement. This framework allows companies to pump cash into a pension scheme in return for being allowed to continue trading without those liabilities.