Turkish Pension Fund To Buy British Steel
British Steel could be taken over by the Turkish Armed Forces Assistance Fund, otherwise known as Oyak, after it put in a bid to buy the company.
The firm was ordered into compulsory liquidation on May 22nd this year, transferring to the Official Receiver after the government and shareholders failed to support the ailing business.
Following this, the Official Receiver revealed it had received several bids before choosing Oyak’s investment arm Ataer as the “preferred buyer”.
A spokesperson stated: “Following discussions with a number of potential purchasers for the British Steel group over the past few weeks, I am pleased to say I have now received an acceptable offer from Ataer.”
It was added that Ataer, which owns nearly half of Turkey’s biggest steel producer Erdemir, will be purchasing British Steel in the “coming weeks”.
Oyak intends to complete the takeover of British Steel by the end of 2019, protecting the 5,000 people it employs, reported BBC News.
The Official Receiver stated that British Steel will continue to trade and supply to its customers as per normal while the sale concludes.
Companies Ataer already own are responsible for producing a quarter of Turkey’s steel, while this latest investment will help the business expand its influence in the global steel industry.
While the collapse of British Steel was a blow to the sector in the UK, particularly as it potentially impacted 20,000 people in the supply chain, the government is trying to protect the industry by launching an inquiry into the decline of the company.
In June, Rachel Reeves, chair of the Business Committee, told the BBC the organisation will look into the failings of British Steel and “examine the serious challenges facing the future of the steel sector in the UK”.
For steel specialists in Sussex, get in touch with us today.