Tata Steel seeks European joint venture with Thyssenkrupp

Tata Steel said Friday it is talking to firms including Germany’s Thyssenkrupp about a potential joint venture in Europe — effectively halting a plan to sell off its British businesses.

The Indian conglomerate has been looking to dispose of its loss-making U.K. businesses. Tata has said it is losing 1 million pounds ($1.3 million) a day in Britain amid high costs and a glut of cheap Chinese steel on the global market.

Tata’s British assets include a steel plant in Port Talbot, Wales, that employs 4,000 people.

The British government has said it is willing to take a 25-percent stake in any rescue of Tata in a bid to save steel jobs.

Tata signaled that the government would have to make good on the offer.

Group Executive Director Koushik Chatterjee said Friday that “the inclusion of the U.K. business in the potential joint venture would depend on several issues including ... support from the governments of the U.K. and Wales.”

Chatterjee said “it is too early to give any assurances about the success” of the joint-venture talks.