InvestorQ : Do you see Tata Steel and Tata Motors exiting their UK operations in the coming year?
Ria Jain made post

Do you see Tata Steel and Tata Motors exiting their UK operations in the coming year?

Answer
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Dia Deshpande answered.
2 months ago


With the talks with the UK government not making much headway, the Tata group could seriously consider selling its stake in JLR, a subsidiary of Tata Motors, and in UK Steel, a subsidiary of Tata Steel. UK government is unwilling to commit public money to the rescue.

Now, the Tata group may look for a strategic partner for JLR. At the same time, the group will also look to fully exit British Steel. The Liberty Group of UK, owned by Sanjeev Gupta, had earlier expressed interest to partner for the Port Talbot project of Tata Steel.

As part of the latest group review, Tata Sons has been unhappy the way the group has been overly dependent on TCS for profits and also for market value. In the case of JLR, the company is becoming a white elephant and has lost £1 billion in the first six months.

JLR was last valued at around £9 billion and German auto major BMW had expressed interest in the company. However, such reports have not yet been confirmed as of date and the Tata group has been unwilling to make any firm commitments on these subjects.