The deal is subject to a number of conditions being met, including the funding arrangements, government approvals, and the transfer of contracts. Greybull Capital will take on the assets and relevant liabilities.

The deal includes the Scunthorpe steelworks in northern England and the Hayange rail mill in northeast France, both of which produce rails, a design office in York and Immingham Bulk Terminal port.

Tata completed a €35m investment programme at Hayange in 2011 to enable the mill to produce 108m-long rails, increase capacity from 300,000 to 400,000 tonnes of rail per year, and improve rail quality.

"Under these current challenging market conditions in Europe with the soaring levels of imports from China, we are happy that Tata Steel UK and Greybull Capital have entered the final stage of completion of the sale of shareholding in Longs Steel UK," says Mr Hans Fischer, CEO of Tata Steel's European operations.