British Steel receives multiple asset acquisition bids

Troubled steelmaker British Steel has received a series of applications that are being reviewed by administrators while production continues. The application deadline expired at the end of last week.

Local media reported last week that Network Rail, JSW, Hesteel Group, Baowu, Liberty, Evraz and the former owner of Greybull Capital are the contenders for all or part of British Steel.

Gareth Stays, director of UK Steel, emphasizes that the metals sector wants the entire business to be acquired by one owner. Based on initial comments from administrators, it appears that some of the proposals received do indeed apply to all of British Steel, he adds.

Stays further notes that there are a number of uncertainties regarding the future of British Steel, such as Brexit and high energy costs in the UK. However, the business that the company specializes in - rails and special steels - will grow in the coming years.

British Steel unions have confirmed that a number of applications for British Steel have been received.

"GMB, the steelworkers' union, has welcomed the proposals that have been made to British Steel after the official receiver reported encouraging levels of interest," the group said in a statement by national official Ross Murdoch. "Manufacturing will continue as normal as workers are waiting for applications to be reviewed, and in the hope that this vital industry will receive proper support that needs to be maintained over the longer term."