More upgrades for Tata Steel after pension deal

The new pension scheme will have lower annual increases for pensioners in future

With the much-awaited Tata Steel UK pension scheme resolution getting cleared, investor sentiment has got a boost. 

For the company, which is working hard to make its European operations more profitable, resolving the British Steel Pension Scheme (BSPS) was critical for de-risking its future liabilities. Also, the scheme was seen as the main stumbling block for Tata Steel’s plan to strike a joint venture (JV) deal between its European operations and larger Europe-based peers such as Thyssenkrupp. 

Not surprisingly then, the news of BSPS resolution saw the Tata Steel stock soar to a high of Rs 692 (last seen in