Tata Steel bidders get cold feet over Brexit

United Kingdom, London: After UK voted to leave the EU in the national referendum, several bidders for Tata Steel’s UK business are close to abandoning talks with their Indian owner as the outcome of the EU referendum threatens to deepen the crisis surrounding the UK’s biggest steel producer.

According to Sky News, the billionaire tycoon Wilbur Ross, who is among seven bidders shortlisted for Tata Steel’s UK business, has signalled that exiting the EU would diminish the prospects of him pursuing a takeover, and a number of other prospective buyers seem to have similar concerns.

Their sources said that Tata Steel had raised the possibility of putting its British business into some form of liquidation, although no decisions had been taken.

It is still possible that the Indian group’s board will be able to secure a buyer for its British operations, with other parties including the management of the Port Talbot site and JSW Steel, assembling offers, reports Sky News.

Source: Sky News