Hit by over supply of steel, and difficult business conditions in Europe, Tata Steel is looking to put its entire UK business up for sale in parts or as a whole.
"Following the strategic view taken by the Tata Steel Board regarding the UK business, it has advised the Board of its European holding company i.e. Tata Steel Europe, to explore all options for portfolio restructuring including the potential divestment of Tata Steel UK, in whole or in parts," the company said in a release to the exchange.
"The board noted the deteriorating financial performance of the UK subsidiary, in the last 12 months. While the global steel demand, especially in markets like Europe have remained muted, following the financial crisis of 2008, trading conditions in Europe and UK have rapidly deteriorated more recently, due to structural factors, due to global oversupply of steel," the company said in a release.
Even under these adverse market conditions, the Tata Steel group has extended financial support to the UK business and has suffered asset impairment of more than $2 billion in the last 5 years," the release added.
Shares of Tata Steel were up more than 1 per cent and were last trading at Rs 307.