Tata Steel UK unit said to attract China’s Hebei Iron & Steel1 min read . Updated: 11 May 2016, 07:44 PM IST
JSW Steel is also weighing a bid for Tata Steel UK unit, which would put it in competition with Liberty House Group and Excalibur Steel UK
Mumbai/Hong Kong: Tata Steel Ltd.’s UK assets have attracted interest from Hebei Iron & Steel Group as the company shortlists bidders for the money-losing assets, people familiar with the matter said.
Indian producer JSW Steel Ltd. is also weighing a bid, which would put it in competition with Liberty House Group and Excalibur Steel UK Ltd., a buyout team led by a Tata executive, said the people, who asked not to be named because the deliberations are private.
Tata Steel announced in March it was considering the sale of its UK operations. The business includes its Port Talbot plant in South Wales along with other assets around the UK Producers in China, the world’s largest producer and consumer of steel, are eyeing alternate markets as local demand falls.
A spokesman for Tata Steel didn’t answer calls seeking comment. Three calls to the press office of Hebei Iron & Steel Group went unanswered on Wednesday. The group’s publicly-traded arm, Hebei Iron & Steel Co., didn’t immediately respond to a faxed request for comment. JSW is evaluating opportunities for UK steel facilities and said it’s premature to comment further in a statement on Tuesday.
Tata Steel has shortlisted seven potential buyers to the next stage of sale process, the company said Monday. The expressions of interest were for the whole UK business. Bidders that only wanted part of the operations won’t be advanced, the company said. Buyout firm Greybull Capital LLP last month agreed to buy Tata Steel’s Scunthorpe steelworks in England as well as mills in Teesside and northern France.
Hebei agreed to buy Serbia’s sole steelmaker Zelezara Smederevo for €46 million ($52.4 million) in April. Producing metal products in Europe may also help Chinese companies reduce accusations of dumping, a practice where companies sell goods at below market cost in other countries, driving prices down, according to Bloomberg Intelligence. European steelmakers are struggling with prices that have fallen by more than 50% since 2008 and a glut in global supply. Bloomberg