The UK and Tata Steel Ltd. are coming closer to agreeing on an aid package that would see the government provide about £500 million ($630 million) of public funding to the Indian company’s British business, according to Sky News.
Tata Steel would sign off on £700 million of capital expenditure over a multi-year period under the terms currently discussed. A deal could be finalized as early as September, Sky reported on Saturday, citing unidentified people familiar with the matter.
The government had raised its initial offer of £300 million over the past months, though it wasn’t clear whether the potential funding was tied to any guarantees that would limit job losses, Sky said.
The steel giant has been in talks with the UK government for years over funding the transition to greener production. Tata Steel’s Port Talbot site is the UK’s biggest steelworks and employs some 4,000 people.
The company told Sky that its discussions with the government are ongoing.
