As part of the arrangement, Tata Steel UK will make a payment of £550 million to the British Steel Pension Scheme (BSPS), while 33 per cent of Tata Steel UK’s equity will be issued to the scheme’s trustee. The deal will affect 125,000 members of the pension scheme. About 6,250 people are employed by Tata Steel in Wales , including 3,500 in Port Talbot . The arrangement will segregate BSPS from Tata Steel UK and the pension scheme’s participating employers, which include certain subsidiaries of Tata Steel UK. Without a deal on the pension scheme, Tata Steel UK had warned it could face insolvency due to the size of the pension fund’s deficit.Reuters earlier cited Thyssenkrupp officials stating that it was still in talks with Tata Steel over a possible combination of both groups’ European steel businesses, adding it would not be rushed into any deal even after an outstanding agreement over Tata's pension obligation might be reached.

Source: Economic Times August 11, 2017 19:52 UTC