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| Cyrus Mistry's departure heightens uncertainty over Tata Steel UK's fate Cyrus Mistry's departure heightens uncertainty over Tata Steel UK's fate | |
| (about 2 months later) | |
| The future of Britain’s steel industry has been thrown into fresh uncertainty after the man in charge of Indian conglomerate Tata Group, which controls the Port Talbot steelworks in south Wales, was unexpectedly ousted. | The future of Britain’s steel industry has been thrown into fresh uncertainty after the man in charge of Indian conglomerate Tata Group, which controls the Port Talbot steelworks in south Wales, was unexpectedly ousted. |
| Cyrus Mistry will be replaced as chairman of Tata Sons, the holding company of Tata Group, by the man he succeeded as boss in 2012, Ratan Tata. This means that control of Tata is back with its founding family. Ratan Tata will serve as interim chairman while the conglomerate looks for a permanent replacement for Mistry. | Cyrus Mistry will be replaced as chairman of Tata Sons, the holding company of Tata Group, by the man he succeeded as boss in 2012, Ratan Tata. This means that control of Tata is back with its founding family. Ratan Tata will serve as interim chairman while the conglomerate looks for a permanent replacement for Mistry. |
| The exit of Mistry comes as Tata Steel is deep in negotiations with German company ThyssenKrupp about merging their European steel operations. | The exit of Mistry comes as Tata Steel is deep in negotiations with German company ThyssenKrupp about merging their European steel operations. |
| Tata Steel is also in talks with the UK government about financial support for Tata Steel UK, which employs 11,000 people, and a restructuring of its pension scheme. Tata Steel has warned that Tata Steel UK will only be included in a deal with ThyssenKrupp if talks with the government are constructive. | Tata Steel is also in talks with the UK government about financial support for Tata Steel UK, which employs 11,000 people, and a restructuring of its pension scheme. Tata Steel has warned that Tata Steel UK will only be included in a deal with ThyssenKrupp if talks with the government are constructive. |
| Mistry has been at the heart of these negotiations. Greg Clark, the business secretary, and his predecessor Sajid Javid have each flown to Mumbai seeking assurances over the future of Tata Steel. | Mistry has been at the heart of these negotiations. Greg Clark, the business secretary, and his predecessor Sajid Javid have each flown to Mumbai seeking assurances over the future of Tata Steel. |
| The fate of Tata Steel UK has been unclear since the Indian company announced in March that it was reviewing its European steel operations. If deals can be reached with ThyssenKrupp and the government then the Port Talbot steelworks and its other key sites will be saved, but unions have criticised the time it has taken for Tata to confirm its plans. | The fate of Tata Steel UK has been unclear since the Indian company announced in March that it was reviewing its European steel operations. If deals can be reached with ThyssenKrupp and the government then the Port Talbot steelworks and its other key sites will be saved, but unions have criticised the time it has taken for Tata to confirm its plans. |
| Sources close to Tata said Mistry was leaving because of a “lack of performance” across the group, which also owns Jaguar Land Rover, Tetley Tea and a string of other diverse brands. | Sources close to Tata said Mistry was leaving because of a “lack of performance” across the group, which also owns Jaguar Land Rover, Tetley Tea and a string of other diverse brands. |
| Analysts and investors in India were shocked by the move. Tata has become renowned for its long-term outlook and stability, with Ratan Tata spending more than two decades as chairman before stepping aside for Mistry. | Analysts and investors in India were shocked by the move. Tata has become renowned for its long-term outlook and stability, with Ratan Tata spending more than two decades as chairman before stepping aside for Mistry. |
| In a brief statement, the Mumbai-based Tata said on Monday that Mistry was stepping down after a “decision was taken at a board meeting held here today”. | In a brief statement, the Mumbai-based Tata said on Monday that Mistry was stepping down after a “decision was taken at a board meeting held here today”. |
| The 148-year-old company gave no public reason for the surprise departure of Mistry after four years in charge. Tata said its committee would aim to find a new chairman within four months. | The 148-year-old company gave no public reason for the surprise departure of Mistry after four years in charge. Tata said its committee would aim to find a new chairman within four months. |
| Mistry, 48, joined Tata’s board in 2006 and was Ratan Tata’s choice to succeed him when he retired in 2012. Mistry’s father, Pallonji Shapoorji Mistry, owns 18.5% of Tata, making him the biggest single shareholder of a company whose shares are mostly owned by family trusts. His sister Aloo is married to Ratan Tata’s half-brother, Noel. | Mistry, 48, joined Tata’s board in 2006 and was Ratan Tata’s choice to succeed him when he retired in 2012. Mistry’s father, Pallonji Shapoorji Mistry, owns 18.5% of Tata, making him the biggest single shareholder of a company whose shares are mostly owned by family trusts. His sister Aloo is married to Ratan Tata’s half-brother, Noel. |
| Early reports from India suggested the board was unhappy about Mistry’s push to shed unprofitable businesses, including Tata Steel in the UK, the disposal of which was announced in March. | Early reports from India suggested the board was unhappy about Mistry’s push to shed unprofitable businesses, including Tata Steel in the UK, the disposal of which was announced in March. |
| Ratan Tata, 78, is the great grandson of Tata’s founder, Jamsetji Tata, and chairs the trusts that own two-thirds of the company. Ratan Tata oversaw a period of expansion, including the purchase of Jaguar Land Rover and Corus, which included the remnants of the old British Steel, during 21 years as chairman. | Ratan Tata, 78, is the great grandson of Tata’s founder, Jamsetji Tata, and chairs the trusts that own two-thirds of the company. Ratan Tata oversaw a period of expansion, including the purchase of Jaguar Land Rover and Corus, which included the remnants of the old British Steel, during 21 years as chairman. |
| Tata’s growth, especially in the UK, was a source of pride in India, but it has been criticised for lack of dynamism and spreading itself too thinly. A recent article in the Economist said Mistry had failed to reorganise the company’s sprawling empire comprising businesses, from watches to IT consultancy, that barely have contact with each other. | Tata’s growth, especially in the UK, was a source of pride in India, but it has been criticised for lack of dynamism and spreading itself too thinly. A recent article in the Economist said Mistry had failed to reorganise the company’s sprawling empire comprising businesses, from watches to IT consultancy, that barely have contact with each other. |