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| Tata Steel: rival bidders make their moves to buy assets | Tata Steel: rival bidders make their moves to buy assets |
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| The race to save some of the thousands of jobs at risk in the UK steel industry has intensified after two potential rival bidders made moves to acquire Tata Steel’s UK assets. | The race to save some of the thousands of jobs at risk in the UK steel industry has intensified after two potential rival bidders made moves to acquire Tata Steel’s UK assets. |
| Excalibur Steel UK, the group planning a management buyout, confirmed it had registered a letter of intent expressing its formal interest. Meanwhile, rival Liberty House, the global metals group, said it would make an indicative bid to turn the business into a giant steel recycling operation. | |
| Stuart Wilkie, chief executive of Excalibur and previously the hub director of Tata Steel’s Strip Products, UK, said: “This project has made enormous advances in a very short period. It was only two weeks ago we made the decision to pursue a buyout that enables the management and staff to take a stake in the ownership and operation of a strategic British industry. | Stuart Wilkie, chief executive of Excalibur and previously the hub director of Tata Steel’s Strip Products, UK, said: “This project has made enormous advances in a very short period. It was only two weeks ago we made the decision to pursue a buyout that enables the management and staff to take a stake in the ownership and operation of a strategic British industry. |
| “We believe we have a large number of the pieces in place required to make this a success, including a management team with vast experience of steelmaking and processing. We are confident we can turn the business around and sustain profitable steelmaking in the United Kingdom, including both the downstream and upstream operations.” | “We believe we have a large number of the pieces in place required to make this a success, including a management team with vast experience of steelmaking and processing. We are confident we can turn the business around and sustain profitable steelmaking in the United Kingdom, including both the downstream and upstream operations.” |
| Sanjeev Gupta, founder of the commodities trading firm Liberty House, said his firm had sent a letter of intent to Tata and had put together an internal transaction team and a group of external advisers to take the bid forward. | |
| Liberty House will submit its bid after Sajid Javid, the business secretary, cancelled a trade trip to Iran planned for later this month when decisions are likely to be made over the future of Tata Steel. | Liberty House will submit its bid after Sajid Javid, the business secretary, cancelled a trade trip to Iran planned for later this month when decisions are likely to be made over the future of Tata Steel. |
| Javid was left embarrassed in March when he was in Australia as Tata announced its decision to sell the UK business – a move unions had warned was on the cards. Javid has since offered government backing for viable offers that save 15,000 jobs at the business. | Javid was left embarrassed in March when he was in Australia as Tata announced its decision to sell the UK business – a move unions had warned was on the cards. Javid has since offered government backing for viable offers that save 15,000 jobs at the business. |
| A spokesman for Javid’s Business Innovation and Skills department, said: “Given the business secretary’s focus on the steel industry, he has decided to postpone his trip to Iran. He remains committed to exploring the opportunities for trade and investment with this emerging market.” | A spokesman for Javid’s Business Innovation and Skills department, said: “Given the business secretary’s focus on the steel industry, he has decided to postpone his trip to Iran. He remains committed to exploring the opportunities for trade and investment with this emerging market.” |
| The trip would have been the biggest trade delegation to Iran since international sanctions were lifted in January. | The trip would have been the biggest trade delegation to Iran since international sanctions were lifted in January. |
| Liberty House was first to express an interest after the Indian conglomerate announced in late March that it would dispose of its loss-making UK business, including the country’s biggest steel plant at Port Talbot in south Wales. | Liberty House was first to express an interest after the Indian conglomerate announced in late March that it would dispose of its loss-making UK business, including the country’s biggest steel plant at Port Talbot in south Wales. |
| A Liberty House spokesman said: “Liberty will submit a letter of intent to Tata Steel [Tuesday] and has put in place a strong internal transaction steering committee and panel of leading external advisers to take the bid forward. We hope to make a further short statement later today.” | A Liberty House spokesman said: “Liberty will submit a letter of intent to Tata Steel [Tuesday] and has put in place a strong internal transaction steering committee and panel of leading external advisers to take the bid forward. We hope to make a further short statement later today.” |
| Gupta has said if he bids for Tata Steel’s UK business he could do so without cutting jobs at Port Talbot, which employs about 4,000 people. But he said it would take years to turn around the business and that Port Talbot’s giant steelmaking blast furnace would be replaced by electric arc furnaces designed to recycle scrap steel. | Gupta has said if he bids for Tata Steel’s UK business he could do so without cutting jobs at Port Talbot, which employs about 4,000 people. But he said it would take years to turn around the business and that Port Talbot’s giant steelmaking blast furnace would be replaced by electric arc furnaces designed to recycle scrap steel. |
| Liberty House employs about 1,500 people in the UK where it already owns steel plants and has been taking on assets affected by the crisis in the industry. It reopened a steel mill in Newport, south Wales, last year after spending two years reviving the site. In March, Gupta bought two mills in Scotland that once belonged to Tata Steel. | Liberty House employs about 1,500 people in the UK where it already owns steel plants and has been taking on assets affected by the crisis in the industry. It reopened a steel mill in Newport, south Wales, last year after spending two years reviving the site. In March, Gupta bought two mills in Scotland that once belonged to Tata Steel. |
| It also emerged on Tuesday that Excalibur Steel UK has received support from the Welsh government. | It also emerged on Tuesday that Excalibur Steel UK has received support from the Welsh government. |
| The Welsh first minister, Carwyn Jones, said he welcomed a “sustainable worker buyout” and that the government in Cardiff had made cash available for Excalibur to assemble its bid. | The Welsh first minister, Carwyn Jones, said he welcomed a “sustainable worker buyout” and that the government in Cardiff had made cash available for Excalibur to assemble its bid. |
| “This will enable them to buy specialist advice, technical support and pay the salaries of the team while the sales process progresses,” he said, according to Sky News. | “This will enable them to buy specialist advice, technical support and pay the salaries of the team while the sales process progresses,” he said, according to Sky News. |
| Liberty House and Excalibur appear to be the only two credible interested parties in Tata Steel UK. The government has pledged to support any buyer with hundreds of millions of pounds, including taking a possible stake of up to 25%. | Liberty House and Excalibur appear to be the only two credible interested parties in Tata Steel UK. The government has pledged to support any buyer with hundreds of millions of pounds, including taking a possible stake of up to 25%. |
| Tata, the Indian conglomerate, has not set a strict deadline for selling the business but it has indicated it will not continue to support the loss-making operation for long. It asked for potential bidders to submit indicative bids this week. | Tata, the Indian conglomerate, has not set a strict deadline for selling the business but it has indicated it will not continue to support the loss-making operation for long. It asked for potential bidders to submit indicative bids this week. |
| Roy Rickhuss, general secretary of the Community steelworkers’ union, said Liberty’s interest in Tata Steel was a good sign but that there was still a long way to go in the sale process. | Roy Rickhuss, general secretary of the Community steelworkers’ union, said Liberty’s interest in Tata Steel was a good sign but that there was still a long way to go in the sale process. |
| “The fact that there are a number of parties interested in buying the business is welcome and shows that investors believe that UK steelmaking can be successful. We would expect all potential investors who come forward to meet with Community so we can understand their plans for the business and ensure they have the capability and capacity to create a sustainable future for UK steel making.” | “The fact that there are a number of parties interested in buying the business is welcome and shows that investors believe that UK steelmaking can be successful. We would expect all potential investors who come forward to meet with Community so we can understand their plans for the business and ensure they have the capability and capacity to create a sustainable future for UK steel making.” |