The deal will see the return of the British Steel brand and saves thousands of jobs.
Bimlendra Jha, Executive Chairman of the Long Products Europe business and CEO of Tata Steel UK said: “As a responsible seller, Tata Steel is delighted to have secured a buyer for this business and we hope that under Greybull Capital ownership, the business will continue the momentum of the improvement program that has been initiated in the last 12 months.
“Employees and trade unions have worked closely with the Long Products Europe management team to improve the business’s prospects, putting it in a more competitive position than it has been for many years.
“It is through their dedication and hard work that we are in this position today in spite of continued challenges in the market”.
The Long Products Europe business includes the Scunthorpe steelworks, two mills in Teesside, an engineering workshop in Workington and a design consultancy in York.
It will now trade under the name of British Steel and employ 4,800 people.