According to the Daily Mail and several other British newspapers, Liberty Steel is one of the companies in serious discussions with the Official Receiver appointed by the bankruptcy court regarding the purchase of British Steel’s U.K. operations. After struggling with difficult markets, British Steel was placed into compulsory liquidation May 22.
British Steel, which employs 5,000 workers and is estimated to support 20,000 additional jobs in the supply chain, according to press reports, collapsed into liquidation after London-based Greybull Capital, its private equity owner of three years, failed to secure new funding from the government.
According to a BBC article, the Official Receiver has been contacted by more than 80 potential purchasers, 60 of which have been sent nondisclosure agreements (NDAs).
London-based Liberty Steel is among those that have made offers, the Daily Mail reports. If the offer is accepted, the company could convert the basic oxygen furnace (BOF) mill to an electric arc furnace (EAF), resulting in a significant increase in the consumption of ferrous scrap metal.
Sanjeev Gupta, the executive chairman of Liberty House Group, has been aggressive in acquiring distressed operations in the steel and metals industry and converting them into functional operations. In addition to acquiring and operating several steel mills in the U.K., the company has acquired steel assets in the United States, including Georgetown Steel and Peoria Steel; and facilities in Australia, China and India.
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