Tata Steel puts UK assets sale on ice, reports say

Tata Steel has temporarily halted the sale of its UK assets as shortlisted suitors pulled out, citing uncertainty after Britain's non-binding referendum to quit the European Union, a report says.

The would-be buyers were uncertain about the viability of Tata's UK operations in the wake of the controversial Brexit vote, reported Bloomberg, citing several sources.

One of those sources said at least four shortlisted bidders had withdrawn.

Tata Steel, which is expected to formally announce the paused sale on Friday, may restart the process once the impact of Brexit becomes clearer.

The assets on the block, including the Port Talbot facility, drew at least seven potential bidders, among them India's JSW Steel and Hebei Iron & Steel Group, sources said.

UK's once-great steel industry has been ravaged by high energy costs, inefficient output and a flood of cheap Chinese exports.

In March, Tata said it planned to sell its UK operations on the back of multi-year losses, putting about 15,000 jobs at risk and raising the alarm for British politicians.

Meantime, the price of steel had sortied higher, which has reduced the pressure on its Indian owners to sell up.

A key obstacle to the sale of Tata's UK assets is the hangover of the British Steel Pension fund, which Tata inherited after buying the business in 2007. The fund has 130,000 members and a £700m deficit.