TATA Steel’s plan to offload Dutch ops hits a roadblock

Tata Steel Ltd.’s plan to sell its Netherlands operations to Swedish steelmaker SSAB AB has run into a hurdle with two large SSAB shareholders expressing reservations about the deal. SSAB has told Tata Steel that it may not be able to close the deal within the six-month internal deadline agreed to in November 2020.

There are several issues that could potentially stall the deal. Those include concerns around higher carbon footprint for the Swedish steelmaker, which will come with the acquisition, and this is something a section of SSAB’s shareholders are not comfortable with as things stand.

In November 2020, Tata Steel had begun talks with SSAB Sweden to sell its profitable division in the Netherlands where its IJmuiden plant has about 7.5 million tonnes of annual steelmaking capacity. Tata Steel confirms that discussions with SSAB are currently ongoing.

Source: Mint