Tata Steel has made a deal to help solve its long-running UK pension stand-off, bringing the company a step closer to a possible joint venture for its European operations with Thyssenkrupp. Both, Tata Steel and the British Steel Pension Scheme trustees have agreed on key terms of a regulated apportionment arrangement, as per a statement. The company will pay £550 million settlement if an agreement is reached, and will sponsor a new closed pension plan.
Executive Director for finance and corporate, Koushik Chatterjee said resolving pension issues is the “first priority” for the company. Tata Steel has been in talks with Thyssenkrupp and others for a joint venture in Europe, in its strategy to curb losses amid a global glut of steel. The German multi-national's CEO Heinrich Hiesinger had identified pension liabilities as a major stumbling block to a deal.
A deal would include combining Tata's plants in the Netherlands and UK with Thyssenkrupp's German plants to create the region's No. 2 producer and a rival to industry leader ArcelorMittal.
