UK govt could 'co-invest' with buyer of Tata's Port Talbot plant

The UK government was looking at"co-investing" with any potential buyers of Tata Steel's Port Talbot operations, Business Secretary Sajid Javid said on Monday.

In a statement to the House of Commons, Javid indicated part-nationalisation was not the government's preferred option.

"Let me be clear: we have not ruled anything out. I have been clear about that. We are also clear, however, that the best steel operators in the world are commercially and privately run and that nationalisation is rarely the answer."

He added the government had appointed Ernst & Young as advisers on the matter.

"I have been in contact with potential buyers, making clear that the government stand ready to help. That includes looking at the possibility of co-investing with a buyer on commercial terms," he said.

"Commercial confidentiality means that I cannot go into detail about ongoing discussions."

The announcement from Javid came on the day that Tata said it had agreed to sell its Long Products Europe operations in the Uk and France to Greybull Capital for a "nominal consideration" in return for a £400m investment.

Seeking to deflect criticism over his handling of the steel crisis, Javid told parliament that he had prevented Tata from closing Port Talbot immediately after being told in confidence about the firm's intentions "several weeks ago".