Tata Steel to continue European consolidation strategy

Mumbai, Oct 28 Tata Steel on Friday said that it would continue to pursue its European consolidation strategy and talks are "ongoing and progressing" for a potential joint venture of its European steel business.

"...Tata Steel would also like to clarify that it continues to pursue its European consolidation strategy and the talks with ThyssenKrupp AG for a potential joint venture of its European steel business are currently ongoing and progressing. However, there can be no guarantee that these talks will result in a definitive agreement between the parties," the company said in regulatory filing to BSE on Friday.

The company also reaffirmed that it is currently "pursuing a separate process" for the potential "sale of the South Yorkshire-based speciality steel business in the UK".

The steel producer also said that Tata Steel UK was deeply engaged with all the relevant stakeholders in the UK to find a structural solution and a way forward with regard to the affordability of the legacy pension scheme liabilities. 

In a letter to the Tata Sons' board, the ousted Chairman Cyrus P. Mistry on Wednesday had alleged some business decisions taken by the board -- where he also claimed being relegated to a lame duck chairman -- covering hotels, automobiles, power, telecom and steel -- could potentially result in a write down over time of about Rs 118,000 crore ($18 billion). 

However, Tata Sons' termed such allegations as "unsubstantiated claims and malicious allegations".

The steel manufacturer has clarified to bourses that the financial statements of the company present "a true and fair view" of the state of affairs of the firm.