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Steel News July 11, 2019 08:30:32 AM

Mayor Confronts Greybull Capital’s Bid for British Steel Assets

Paul Ploumis
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The Mayor urged the Government and the Official Receiver to prioritize other bids for the troubled company.
Mayor Confronts Greybull Capital’s Bid for British Steel Assets

SEATTLE (Scrap Monster): Tees Valley Mayor Ben Houchen has opposed the move by Greybull Capital to buy parts of British Steel, which had collapsed into liquidation in May this year, after the government declined to bail out the company.

The Mayor urged the Government and the Official Receiver to prioritize other bids for the troubled company. Further, he said that the company should be sold as a whole, rather than in parts. Criticizing Greybull Capital, its practices and ethics, Mr. Houchen stated that he would prefer British steel to be sold as a whole to another steelmaker and not to a private equity firm. The bids for the whole of British Steel should be given top priority, ahead of Greybull’s bid, he added.

It must be noted that Greybull Capital- the former owners of British Steel had expressed interest in certain plants. 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.  

ALSO READ: Liberty Steel Group Among Bidders for Troubled British Steel Assets

Meantime, sources indicate that Network Rail too is in the race for buying parts of the company, as part of its efforts to not lose one of its most important suppliers.

Nearly 80 parties have made preliminary enquiries. Nearly a dozen of companies are said to have expressed interest in buying the full business or in parts. The bidders include Indian JSW Steel and Russian Evraz. The sale process, assisted by Ernst & Young, is likely to conclude only by next week.