September 11, 2017 / 11:52 AM / 11 days ago

Tata Steel UK pension scheme separates from firm

The Tata Steel plant is seen at sunset in Port Talbot, South Wales, May 31, 2013. REUTERS/Rebecca Naden/File

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

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