LONDON (Reuters) - Tata Steel’s UK pension scheme has separated from the company after regulators confirmed its pensions deal, the company said on Monday, paving the way for a merger of the European steel assets of India’s Tata Steel with those of Germany’s Thyssenkrupp.
“The (British Steel Pension Scheme) has now been separated from Tata Steel UK and a number of affiliated companies,” Tata Steel UK said in a statement.
The pension scheme has been a major stumbling block in a possible merger between the Indian steelmaker and Thyssenkrupp, because the German company was opposed to taking on 15 billion pounds ($19.82 billion) in UK pension liabilities.
The Pensions Regulator approved a deal last month to separate the Tata Steel UK pension scheme, but allowed 28 days for any objections.
($1 = 0.7568 pounds)
Reporting by Carolyn Cohn and Maytaal Angel, editing by Maiya Keidan