Tata Steel will soon freeze auction of its UK steelworks as it weighs the consequences of the Brexit vote. While the giant had announced its plans to auction its Port Talbot steelworks in Wales, earlier this year, the move was stalled in order to assess the fallout of the Brexit vote.
The board has not made a formal decision yet, but is without doubt under less pressure to sell, given the jump in steel prices that has cut losses at the south Wales site. It 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 European Union (EU) trade deals.
"The strategic review of our UK business continues. Like business across the UK, parties involved will be considering implications from the referendum. We remain committed to working towards the best possible outcome for our UK business," Tata said in a statement. The decision will not go down well with the bidders' throats, including Indian-origin businessman Sanjeev Gupta and his commodities trader Liberty House.
