KOLKATA: Tata Steel is hopeful of “shortly“ reaching a final agreement on a deal to separate its UK pension scheme from its businesses, a development that could pave the way for potential merger of its European businesses with German steel producer Thyssenkrupp While Tata Steel and Thyssenkrupp have been in talks to merge their European steel businesses for nearly a year, experts believe Tata Steel's £15-billion British Steel Pension Scheme (BSPS) has been a major stumbling block.A Tata Steel spokesman in the UK told ET that the parties involved in the pension deal are in "positive discussions and we are hopeful of reaching a final agreement shortly. "Media reports in the UK on Wednesday had said Tata Steel could be days away from a deal on its pension scheme.Tata Steel UK and the BSPS trustee had in principle agreed on key commercial terms of a Regulated Apportionment Arrangement (RAA) in May. The RAA is subject to formal agreement by the Pension Regulator and non-objection by the Pension Protection Fund, and individual entities that would be party to the RAA. "On Thursday , a Reuters report from Frankfurt quoted Thyssenkrupp CFO Guido Kerkhoff saying that the firm will not be rushed into any deal with Tata Steel. "Just because you might read at some point that Tata has a deal it doesn't mean we can stand up a week later and say , 'Now we have a joint venture.'

Source: Economic Times August 11, 2017 05:16 UTC