03 May Liberty House to bid for Tata Steel’s UK assets
Global metals investor Liberty House announced it will submit a bid for Tata Steel’s UK assets today with deadlines closing for bids from British businesses.
The commodities trading firm headed by CEO Sanjeev Gupta said it would make an offer for the whole of the company, including the blast furnace site in Port Talbot and a specialty business in Yorkshire.
A spokesman from Liberty House said: “Liberty will submit a letter of intent to Tata Steel today (Tuesday) and has put in place a strong internal transaction steering committee and panel of leading external advisers to take the bid forward.”
Gupta said no jobs would be cut at Port Talbot if he bids for the UK business, but it would take years to turn it around.
He noted that Port Talbot’s steel making blast furnace would be replaced by electric arc furnaces designed to recycle scrap steel.
A management buyout team under the name Excalibur Steel UK Limited led by Stuart Wilkie, head of Tata’s British strip steel business, also plans to place a bid.
Liberty House and Excalibur seem to be the only who interested parties in Tata Steel UK and the government has pledged to support any buyer with a possible stake of up to 25 per cent.
Tata Steel UK has asked for potential bidders to submit suggestive bids this week.