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Tata Steel has finally freed itself from its 15 billion pound UK pension liability. The steel major has received the confirmation from UK's pension regulator for the deal.
In an interview to CNBC-TV18, Rakesh Arora, Independent Market Expert said this was in the making for some time and very well expected by the market so it will not come as a surprise.
He further said that people are more focused on a possible merger with Thyssenkrupp.
"Talking about pension liability - the first impact is that they have to provide for 550 million pounds. So it's a negative impact on the balance sheet and profit and loss (P&L). Second, they concede 33 percent stake in Port Talbot to the trust. So to that extent earnings are going to go down whenever this deal is consummated, so it's also a negative impact on the P&L,
Generally looking at the sector and Tata Steel in particular, we are coming closer to the end of good news period for Tata Steel, said Arora. However, the next good news possibly is a merger with Thyssenkrupp, he added.