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Tata Steel gets regulatory approval for UK pension deal
August 11, 2017 / 12:12 PM / a month ago

Tata Steel gets regulatory approval for UK pension deal

Aug 11 (Reuters) - India's Tata Steel Ltd has received regulatory approval for a UK pension deal, it said on Friday, paving the way for a possible merger between its British and European steel assets and those of Germany's Thyssenkrupp . With the new agreement coming into effect, the UK pension scheme will be separated from Tata Steel UK and a number of affiliates, the company said. (bit.ly/2vt3uAD)

Tata Steel will pay 550 million pounds into the British Steel Pension Scheme and will also give one of Britain’s largest final salary pension schemes a 33 percent equity stake in Tata Steel UK Ltd.

The terms of the deal are in line with those outlined by Tata Steel earlier this year.

The pension scheme has been a major stumbling block in a possible merger with Thyssenkrupp, because the German company is opposed to taking on 15 billion pounds ($19.37 billion) in UK pension liabilities.

Reporting by Samantha Kareen Nair in Bengaluru; editing by Carolyn Cohn in London

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