Tata group's Corus sells 50 pc stake in UK rail firm

LONDON: Indian conglomerate Tata-owned Corus has sold its 50 per cent stake in GrantRail Group to its Netherlands-based joint venture partner VolkerWessels.

However, the financial details of the transaction could not be ascertained immediately.

Following the development, railway infrastructure services firm GrantRail, which was a 50:50 joint venture between Corus and VolkerWessels, has become a fully-owned entity of the Dutch firm.

"VolkerWessels is taking full ownership of GrantRail Group with the purchase of the 50 per cent stake holding owned by its joint venture partner, Corus," GrantRail Group said in a statement on Wednesday.

The acquisition by global rail and construction group VolkerWessels of Corus' stake in the UK-based firm was completed today, it said, adding that the company's name would remain unchanged.

"The GrantRail Group will leverage the extensive European rail infrastructure capabilities of VolkerWessels and continue to grow and expand, not only as a leading contractor in the railways but also as a key part of the VolkerWessels activities in the UK in years to come," said GrantRail Group CEO Gren Edwards said.

Doncaster-based GrantRail Group was formed in 1996 as a 50-50 JV between VolkerWessels and the Europe's second largest steel maker Corus.

"GrantRail was not part of our core steel production activities. The additional expertise available from VolkerWessels will help GrantRail to continue to develop and grow in future," Corus Rail Managing Director Joe Guerin said.

GrantRail's Chief Executive Edwards added,"...going forward provides an enhanced focus offering greater breadth and depth to our activities in UK and Ireland."