British Steel Close to Strike Rescue Deal with Turkish Pension Fund

SEATTLE (Scrap Monster): The deal to save British Steel’s steelmaking facilities and thousands of jobs is in final stages, as the government is believed to be entering into consultations with three potential bidders in the running. A Turkish pension fund is likely to emerge as the preferred bidder, by eliminating the other two remaining bidders, sources said. An announcement to this effect is expected soon.

According to sources, Ataer Holdings, owned by the Turkish military pension fund Oyak, is the frontrunner. The other bidders are most likely to be excluded. Atear will be named as the preferred bidder for the entire British Steel assets by the government’s official receiver, David Chapman with days. The final deal will follow a period of due diligence, in which the bidder needs to ensure government’s financial support.

The two other bidders are Liberty House and Greybull Capital. Liberty Steel plans to convert the Scunthorpe works from a blast furnace plant to electric arc furnace plant, for which it has already sought government loan guarantees. On the other hand, Greybull Capital is more interested in buying parts of British Steel. It had submitted bid for buying British Steel’s Lackenby and Skinningrove plants on Teesside, in addition to a smaller facility at Blaydon in Gateshead.

British Steel was put into compulsory liquidation in May 22 this year, following its failure to secure additional funding from the government to keep it running.