Skip to content
Search AI Powered

Latest Stories

Bidders scramble to break up British Steel: Sources

STEELMAKERS and private equity firms are only working on proposals for parts of collapsed British Steel ahead of a June deadline for binding bids, sources close to the process said.

None of the potential buyers, which include GFG Alliance and former owner Greybull, would be willing to take on the whole company, even for a nominal sum, because of the capital expenditure required to make it profitable after years of underinvestment, the sources said.


They added that June 12 is the deadline for binding bids for the country's second largest steel producer.

British Steel, which produces high-cost long steel products used in construction and rail networks, was put into compulsory liquidation on May 22, jeopardising 5,000 jobs at the company and a further 20,000 more in the supply chain.

Unions oppose a break up of the business, making any partial sale politically difficult, but the British government is under pressure to find a quick solution as it potentially faces a wage bill of around £250 million a year until a buyer is found, one of the sources said.

GFG Alliance, a privately held conglomerate led by Sanjeev Gupta, is likely to make an offer for operations that have synergies with their existing steel assets in the region and the more profitable ones, a second source said.

GFG, via its Liberty House unit, bought Scunthorpe-based Caparo Merchant Bar, which produces steel bars for construction, energy and infrastructure, from administrators in 2017.

GFG Alliance declined to comment.

Greybull Capital, which paid former owners Tata Steel a token one pound for British Steel three years ago, is interested in buying its operations in France and the Netherlands, which specialise in rail, wire and processing, one of the sources said.

"We will explore all options to help the company find the best sustainable solution for the good of its employees, customers and all involved," Greybull told Reuters in an emailed comment.

British Steel's advisor EY has also reached out to other European steelmakers including Italy's Marcegaglia Group, AFV Beltrame Group and Acciaierie Venete, and also international players such as India's JSW Group and Posco Steel, two of the sources said.

Private equity firm Endless, which was a bidder for the steel assets at the time of the Greybull takeover, could also make a proposal, they said.

Not all of those contacted were likely to bid. Marcegaglia, for instance, will not do so as it does not see synergies with the British producer, a source close to the company said.

Across Europe, the steel industry is struggling with cooling demand and growing supply, in part as steel tariffs deflect supplies from the US, steelmakers say.

Analysts have said more consolidation of the European steel industry is inevitable.

Gupta's Liberty House Group is already buying assets across Europe after the European Commission approved ArcelorMittal's purchase of Ilva on condition it sold off works in Romania, the Czech Republic, Italy, Belgium, Luxembourg and North Macedonia.

(Reuters)

More For You

FCA warns against regulatory 'race to bottom' in growth push
Nikhil Rathi
TOLGA AKMEN

FCA warns against regulatory 'race to bottom' in growth push

FINANCIAL REGULATOR has cautioned against compromising regulatory standards while attempting to boost economic growth, revealing the delicate balancing act facing Britain's financial oversight.

In a frank discussion with MPs, the Financial Conduct Authority (FCA) leadership highlighted the challenges of their expanded mandate to promote business competitiveness alongside consumer protection, reported the Times.

Keep ReadingShow less
Sanjay Bhandari's extradition appeal opens in London
Sanjay Bhandari

Sanjay Bhandari's extradition appeal opens in London

SANJAY BHANDARI, a consultant in the defence sector wanted in India on alleged tax evasion and money-laundering charges, began an appeal in the High Court in London against his extradition order.

The 62-year-old businessman had won permission to appeal against a November 2022 Westminster Magistrates’ Court ruling clearing his extradition earlier this year.

Keep ReadingShow less
Rupert Murdoch looks on as he walks on the day of the hearing on the contentious matter of succession of Rupert Murdoch's global television and publishing empire, in Reno, Nevada, US, September 23, 2024. (Photo: Reuters)
Rupert Murdoch looks on as he walks on the day of the hearing on the contentious matter of succession of Rupert Murdoch's global television and publishing empire, in Reno, Nevada, US, September 23, 2024. (Photo: Reuters)

Murdoch's bid to secure eldest son's control of media empire fails

RUPERT MURDOCH’s attempt to secure control of his media empire for his eldest son, Lachlan, has reportedly failed, according to a US news report on Monday.

The Murdoch family, which oversees influential outlets like Fox News, The Wall Street Journal, and various British and Australian media organisations, has often been compared to the fictional dynasty in the TV series Succession. Like the show, real-life disputes within the Murdoch family have centred on control of the business after Rupert Murdoch’s death.

Keep ReadingShow less
Kamlesh Pattni faces UK sanctions for illicit gold trade
Pattni stands accused of central involvement in the infamous Goldenberg scandal. (Representational image: iStock)

Kamlesh Pattni faces UK sanctions for illicit gold trade

THE UK and US have imposed financial sanctions on Kamlesh Pattni, a British-Kenyan businessman with a controversial financial history. The punitive measures target Pattni and four of his close family members, including his wife and brother-in-law, reported the BBC.

The sanctions, announced by the UK Foreign, Commonwealth and Development Office, will result in the immediate freezing of assets, representing a significant intervention in what officials describe as a complex network of illicit gold trading spanning multiple African nations.

Keep ReadingShow less
Sanjay Malhotra speaks during the 67th Foundation Day of the Directorate of Revenue Intelligence (DRI) in New Delhi on December 4, 2024. (Photo: Getty Images)
Sanjay Malhotra speaks during the 67th Foundation Day of the Directorate of Revenue Intelligence (DRI) in New Delhi on December 4, 2024. (Photo: Getty Images)

India appoints Sanjay Malhotra as new central bank governor

INDIA has appointed Sanjay Malhotra, a senior finance ministry bureaucrat, as the new governor of its central bank, the Reserve Bank of India (RBI).

The announcement was made on Monday, a day before the term of outgoing governor Shaktikanta Das was set to expire.

Keep ReadingShow less