Pension scheme is stumbling block for Tata Europe jv, sources say

The British Steel Pension Scheme (BSPS) is the stumbling block in Tata Steel’s negotiations to merge its European operations with those of another steelmaker, sources have told Metal Bulletin.

The Tata-funded scheme has around 130,000 members, assets of £15 billion ($19 billion) as of August 12 this year, and a deficit of around £700 million ($907 million), according to a report in UK newspaper The Guardian in May.
Tata Steel UK announced in July that its 4.90 million-tpy steelmaking plant at Port Talbot, in South Wales, could be included in a joint venture intended to consolidate the European steel industry, therefore effectively ending the plant’s previous sales process.

“There’s an understanding that the pension scheme has to be sorted [but] I am not sure if anyone has a solution,” a...

Published

Lee Allen

September 26, 2016

15:05 GMT

London