Other buyers for British Steel considered as time runs out for Ataer

The future of Britain’s second-biggest steel producer, British Steel, is in doubt again as the Government fails to make a deal with Ataer Holding.

The investment arm of OYAK, Turkey’s military pension fund, was given a 10-week window in which the official receiver would not hold talks with other potential buyers – this period of exclusivity comes to an end Thursday.

Talks to complete the sale of the steel manufacturer will continue with Ataer, but the delay casts fresh doubt on the deal. 5,000 jobs are directly at risk at British Steel and a further 20,000 in the supply chain.

Ataer Holding, backed by a Government support package, had been picked as having the strongest offer for British Steel, which went into compulsory liquidation in May.

After the end of exclusive talks on Thursday, it is expected that Liberty House Group will begin speaking with the official receiver about purchasing British Steel.

Although the official receiver has been restricted to only holding talks with Ataer, the Department for Business, Energy and Industrial Strategy (BEIS) has not been limited. According to Sky News, Liberty reignited talks with the Government department earlier this week about a full takeover of the steelmaker.

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The official receiver said:

“While discussions with Ataer are continuing, discussions with other parties who have expressed continued and renewed interest in acquiring the whole British Steel business will now be possible. I have instructed the Special Managers to engage with these additional interested parties. Diligence team members from these parties are expected to visit the company’s sites over the coming days and weeks. Meanwhile Ataer remain very much interested in acquiring the business and we remain in detailed discussions with them to conclude a sale.

“I remain focussed on achieving a sale of the business and assets of British Steel as quickly as possible, to achieve the best possible outcome for the Company’s creditors. The conclusion of the exclusivity period allows us to consider all of the options available at this point in the process. I would like to thank the team at British Steel for their continued support and hard work during this period of uncertainty.”

In August TSP Projects, a wholly owned subsidiary of British Steel was sold to Systra. Based in York, TSPP provides consultancy, design, engineering and on-site project management services. The sale of TSPP to Systra – the UK subsidiary of French-based SYSTRA Group – preserved over 400 jobs at TSPP.

The sale of TSPP has no impact on the proposed sale of the remaining British Steel group and exclusive talks with the preferred buyer will continue until Thursday, before holding talks with other buyers as well.