Tata Steel UK announced on Friday it had signed the documentation for a Regulated Apportionment Arrangement (RAA) with the trustee of the British Steel Pension Scheme, paving the way for a possible merger with German steel major ThyssenKrupp. The RAA would take effect after Tata Steel UK makes a payment of £550 million to the British Steel Pension Scheme. At the same time, shares in Tata Steel UK would be issued to the British Steel Pension Scheme trustee under the terms of a shareholders’ agreement, leading to a 33% economic equity stake in Tata Steel UK being held by the Trustee, the company said. Tata Steel UK has also reached an agreement for the sponsorship of a proposed new pension scheme. All members of the British Steel Pension Scheme would be invited to transfer to the new scheme subsequent to the completion of the RAA.

Source: Hindustan Times August 11, 2017 13:06 UTC