An American tycoon is reportedly in last-minute talks to seal a takeover of Tata Steel’s UK steel works amid a supplyimbalance facing the global steel industry. Switzerland-based commodities magnate Gary Klesch is trying to finalise a deal to buy the UK section of Tata’s ‘long products’ unit, ‘The Sunday Times’ reported.
The unit has about 6,500 staff and steel plants in Scunthorpe, Teesside, Dalzell and Clydebridge in Scotland, and also France and Germany. The Scunthorpe site in northern England, which is under discussion as part of the agreement is the largest of all. The Tata group last week wrote down the value of the long steels division to zero with a 500-mn pound provision, paving the way for the sale.