Tata Steel rallies on reports of striking pension deal

NEW DELHI: Tata Steel Ltd rallied nearly 3 per cent in morning trade on Monday after media reports suggested that the Indian steel giant is believed to be edging closer to striking a new deal over the 15-billion-pound pension pot that stands in the way of an agreement over of its UK steelworks.

At 09:40 am; Tata Steel was trading 2.3 per cent higher at Rs 416. It hit a low of Rs 409 and a high of Rs 417.25 on the BSE in the first 30-minutes of trade.

The Tata Group firm is understood to have opened talks with the UK's Pension Protection Fund (PPF) and the Pensions Regulator over an unorthodox restructuring deal, which would see a merger of its European arm with Germany's ThyssenKrupp, 'The Sunday Times' claimed.

The report further added that an agreement could secure the immediate future of the Port Talbot plant in south Wales and its 4,000 staff members, plus other plants across the country which were put up for sale in March this year.