Tata Steel has confirmed a deal to sell its Long Products Europe business, including its Scunthorpe plant, to UK-based investment firm Greybull Capital.
The move will safeguard more than 4,000 jobs, but workers are being asked to accept a pay cut and less generous pension arrangements.
Greybull said it was arranging a £400m investment package as part of the deal.
The business will be rebranded as “British Steel” once the deal is completed in eight weeks, it said.
Greybull partner Marc Meyohas said he was “delighted” with the agreement and that he believed the division could become a “strong business”.
“We are now focused on taking the deal to completion in order that the business can start its next chapter with confidence,” he added.
The Long Products Europe business is a key part of Tata Steel’s long products division, which makes steel for the rail and construction sectors.
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Source:: BBC UK