Gupta faces legal battle over £100m takeover of rival Tata’s speciality steel operations
Sanjeev Gupta faces a legal battle over his £100million takeover of a rival’s speciality steel operations.
The embattled tycoon’s empire bought the Rotherham-based business, which provides materials to automotive, aerospace and energy firms, from Tata in 2017.
But Tata is now suing Gupta over claims he missed payments related to the deal.
Missing payments: Sanjeev Gupta (pictured) bought a Rotherham-based steel business, which provides materials to automotive, aerospace and energy firms, from Tata in 2017
The move is another blow to Gupta as he fights to keep his conglomerate, GFG Alliance, afloat after the dramatic collapse of lender Greensill Capital.
Tata confirmed the legal action but said it could not comment on the proceedings.
When Gupta bought the speciality steel division from Tata, it was hailed as a job-saving rescue that would secure the future of 1,700 staff in Rotherham and Stocksbridge.
The business was folded into GFG’s Liberty Steel and along with several other deals, it helped Gupta rapidly expand the firm into Britain’s third-biggest steel maker. Greensill was the main source of funding for the tycoon’s empire before it collapsed.
Tata has launched its case against Liberty Speciality Steels, Liberty House Group PTE and Speciality Steel UK, all of which are part of GFG.
Labour’s Sarah Champion, MP for Rotherham, said the fresh threat had put ‘the lives of thousands of people in a precarious position’. GFG did not comment.