Maintaining that Tata Motors is committed to manufacturing in the United Kingdom, a company spokesperson said told The Indian Express, “There will be a significant negotiating period, and we look forward to understanding more about that as details emerge negotiations between the United Kingdom government and the EU will continue to recognise the importance of vehicle manufacturing to the United Kingdom and European economies”.
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Investors just want the Brexit vote to pass, as they have hedged their positions substantially, said Harjit Singh, deputy research head of Aldmondz Global Securities Ltd. “There is an appetite at the lower level should markets react”, he said.
Shares of Tata Motors crashed 12.9 per cent to Rs 425 while Tata Steel tanked 10.89 per cent and Bharat Forge tumbled 8.7 per cent to Rs 686.80 on the BSE.
U.S. turnaround king Wilbur Ross, who is among the seven bidders eyeing Tata Steel’s United Kingdom operations, is set to abandon the deal.
The diversified enterprise’s biggest revenue generating unit in the United Kingdom is JLR, followed by TCS.
“The Europe market is of prime importance to India”, the National Association of Software and Services Companies, India’s biggest tech lobby, said in a statement on Friday. “Also, the expected volatility in the markets and currencies will be coming at a time when the industry is trying to revive from a five month decline since January this year”.
“Decisions by the United Kingdom electorate will always be respected by Tata Steel”, a company spokesman said. There will now be “recalibration” after the UK’s decision to leave the European Union, a major market for Tata Steel UK, it quoted a person close to the company as saying, without identifying the person.
In the longer run, Nasscom says there might be some positives as well: With the existing 800 Indian companies employing 110,000 individuals in the country, a deeper partnership with India may be in Britain’s interest, according to Nasscom.
“This will require the United Kingdom to sort out its post-exit arrangement with its main trading partner, i.e., the European Union, first”.
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Tata’s speciality steels division and its pipeline tube operations – which operate at sites in Hartlepool, Rotherham and Stocksbridge near Sheffield – have been put up for sale independently of the wider auction.
