UK most likely to offer loan on commercial terms for Tata Steel plant investment

LONDON (Reuters) - Britain's financial involvement in helping the sale of Tata Steel's Port Talbot steelworks is most likely to be through a state loan provided on commercial terms alongside other investors, a government source told Reuters on Tuesday.

The source said that a government loan as part of a deal with other investors was the "likeliest scenario" for the purchase of the steelworks. Business Secretary Sajid Javid had said on Monday that the government would consider "co-investing" to help ensure the future of the plant.

Tata put its entire UK business up for sale last month, including its flagship production plant at Port Talbot in south Wales, saying it could no longer endure mounting losses caused by increased shipments to Europe from countries like China, high manufacturing costs and domestic market weakness.

 

The source said that there was only a remote possibility that the state would end up taking an equity share in the Port Talbot operation.

(Reporting by William James; editing by Michael Holden)