Tata Steel said to near Scunthorpe steelworks deal

A deal to rescue Tata Steel’s Scunthorpe plant may be signed as early as Monday.

According to the BBC, the sale of the steelworks – which has been on the market since 2014 – to UK-based investment firm Greybull Capital, would involve a £400m investment package.

It was also understood the deal would secure about 4,800 jobs and thousands more in supply chains and the local economy.

Greybull, which was engaged in talks to buy the steelplants before Tata said it was selling its entire UK business, has been in discussions with the UK government over a loan of up to £100m to fund part of its investment.

Part of the deal would involve staff accepting a 3% pay cut for a year but Greybull does not expect to cut more jobs than the 1,200 already announced.

Tata Steel confirmed at the end of March that it was putting its UK business up for sale.

The company said at the time: “Following the strategic view taken by the Tata Steel Board regarding the UK business, it has advised the board of its European holding company i.e. Tata Steel Europe, to explore all options for portfolio restructuring including the potential divestment of Tata Steel UK, in whole or in parts.

“Given the severity of the funding requirement in the foreseeable future, the Tata Steel Europe Board will be advised to evaluate and implement the most feasible option in a time bound manner.”