Daily Management Review

Tata Steel UK On Its Assets Bid


The two key bidders of Tata Steel UK takeover deal are open to work in collaboration.

On Tuesday, the 24th May 2016, the companies who had taken interest in purchasing the assets of Tata UK Steel had not submitted their bids to the “Indian conglomerate”.
According to the media reports, it was suggested that “Excalibur and Liberty”, the two main bidders were also exploring the possibility of “joining forces”, while the decision from the Tata’s board members are still expected.
In the month of March 2016, the steel industry of Tata UK was shaken by the imports of cheap Chinese material which came together with the “high energy costs”, whereby the company of Tata decided to sell its “UK steel operations”.
According to BBC, the Liberty House and Excalibur Steel, the latter being the “management buyout group”, will be presenting their separate takeover bids. Nevertheless, the report also added that both the companies are also exploring a parallel plan of working out a partnership which they might mention in the “bid documents”.
Moreover, Digitallook informs:
“Other bidders include Greybull Capital, which recently bought Tata's Scunthorpe-based long products division, Hebei Iron and Steel Group, China's largest iron and steel company, Indian steel company JSW, US scrap recycler Nucor and Endless, a Leeds-based private equity firm and turnaround specialists”.