Jingye is leading contender for British Steel buyout
2019-11-04 14:55:12 [Print]
China's Jingye has emerged as the leading contender to buy British Steel, which collapsed into administration in May.
According to a source Jingye was extremely interested in making a bid after senior executives – including its chairman, Li Ganpo – flew into the north of England last week for meetings with MPs, unions and advisers to the sale.
British Steel collapsed into liquidation in May, threatening 5,000 staff directly and at least 20,000 more in the supply chain.
"Jingye – a Chinese steelmaker – are in advanced discussions to buy British Steel. They were one of the other bidders during the process a matter of weeks ago, but are now the frontrunners to buy the business. It was wonderful to listen to chairman Li about his plans for British Steel and what we can do together to project jobs on Teesside," said Ben Houchen, the Conservative mayor of the Tees Valley.
Ataer, owned by the Turkish military pension fund, is still in the frame, despite it not reaching an agreement during a recent 10-week period of exclusivity granted by the official receiver, which named the preferred bidder.
Liberty House, run by the Indian steel magnate Sanjeev Gupta, is also understood to be rekindling its interest in the business, although its bid is likely to result in jobs losses as it reportedly plans to turn its Scunthorpe plant into a steel recycling centre.
An unspecified but substantial financial indemnity provided by the government has enabled the company – via the official receiver – to continue to trade, even while insolvent.
According to a source Jingye was extremely interested in making a bid after senior executives – including its chairman, Li Ganpo – flew into the north of England last week for meetings with MPs, unions and advisers to the sale.
British Steel collapsed into liquidation in May, threatening 5,000 staff directly and at least 20,000 more in the supply chain.
"Jingye – a Chinese steelmaker – are in advanced discussions to buy British Steel. They were one of the other bidders during the process a matter of weeks ago, but are now the frontrunners to buy the business. It was wonderful to listen to chairman Li about his plans for British Steel and what we can do together to project jobs on Teesside," said Ben Houchen, the Conservative mayor of the Tees Valley.
Ataer, owned by the Turkish military pension fund, is still in the frame, despite it not reaching an agreement during a recent 10-week period of exclusivity granted by the official receiver, which named the preferred bidder.
Liberty House, run by the Indian steel magnate Sanjeev Gupta, is also understood to be rekindling its interest in the business, although its bid is likely to result in jobs losses as it reportedly plans to turn its Scunthorpe plant into a steel recycling centre.
An unspecified but substantial financial indemnity provided by the government has enabled the company – via the official receiver – to continue to trade, even while insolvent.
