Tata Steel Offers to Pay £520 Million Into UK Pension Scheme

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Tata Steel has offered to make a one-off payment of £520m into its UK pension scheme, in its latest effort to make a clean break from its large British retirement liabilities, the Financial Times reported. The Indian steelmaker has put the offer to the trustees of the UK scheme — called British Steel Pension Scheme — as part of moves by Tata to try to hive off the retirement fund. The proposed £520m payment into the BSPS is intended to release a guarantee the scheme holds over some of Tata’s Dutch assets. This charge is a significant barrier to efforts by Tata and ThyssenKrupp, its German rival, to combine their European steelmaking operations, including the Indian group’s UK assets. Tata has been holding talks with ThyssenKrupp over merging their European assets after deciding to drop previous plans to sell its UK business, which is centred on Port Talbot in south Wales. The unit has struggled for years with weak earnings. Read more. (Subscription required.)