Written by Thy
Edited by HV
UK-based Greybull Capital has bought Tata Steel’s long products business assets in Europe with a £400 million investment package, securing 4,400 jobs in the UK.
The rescued division will be renamed as British Steel, and keep the existing management while searching for a permanent CEO.
The private equity manager had showed its interest in taking over this troubled division of Tata Steel months before the steel-making giant announced to put its entire UK business on sales. Financial Times reported in January that Greybull had come up with a turnaround plan to bring the struggling business back to profitability by focusing on rail as a “profitable and differentiated product.”
The long-product division was not central to Tata Steel’s business plan, but Greybull saw an opportunity and seized it right after the sales announcement.
Greybull Capital is known for transforming the airline group Monarch since the company acquired the nearly-collapsed business in 2014. This acquisition could be a new hope for the British steel industry.