Tata Steel UK (TSUK) has confirmed it had signed documentation for a pact with the Trustees of the £15 billion British Steel Pension Scheme, which will allow the steelmakers pension scheme to be separated from the business, reducing the risks to the company.
The deal, which would remove the main obstacle to a potential merger of the companys European business with Germanys ThyssenKrupp and obviate the risk of insolvency, would cost the company £550 million and a 33% equity stake, under the terms agreed.
Best possible outcome
Considering the continued challenges in the global steel industry as well as the uncertain global politico-economic environment, the RAA [Regulated Apportionment Arrangement] presents the best possible structural outcom…
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