By Jaimin Solanki
TURKEY'S military pension fund OYAK has reached a provisional agreement to take over British Steel, it said on Friday (16), adding it planned to close the deal by year-end.
Britain's second-largest steelmaker employs 5,000 workers and produces high-margin steel products used in construction and railways. It supports a further 20,000 jobs in its supply chain.
The company was put into compulsory liquidation on May 22 after Greybull Capital, which bought the firm for one pound from Tata Steel three years ago, failed to secure funding to continue its operations.
Ataer Holding, an affiliate of OYAK, will have the exclusive rights to carry out due diligence on British Steel and expects to complete this in October, OYAK said in a statement.
"We will continue to make our investments for the high benefit of our members and to take domestic and international steps with our growth-focused vision," said OYAK General Manager Suleyman Erdem.
"It is expected that the due diligence process will be completed in October and if it is finalised successfully the transfer of the company will be completed by the end of this year," OYAK said.