Potential buyers of British Steel opt for partial bids

British Steel

There are signs that British Steel could be sold in parts instead of a single sale to a bidder.

According to Reuters News, neither GFG Alliance, a top bidder nor GreyBull, owners of the struggling steelmaker are willing to buy the whole company.

However, unions in the company are already opposing a partial sale but the company’s annual wage bill of about $318 million.

Quoting unnamed sources, Reuters claimed that advisors to British Steel, EY, has reached out to several steel giants across Europe including Italy’s Marcegaglia Group, AFV Beltrame Group and Acciaierie Venete  India’s JSW Group and Posco Steel.

The collapse of British Steel is estimated to risk over 20,000 direct jobs across the UK.

Reuters reported that the High Court ordered the compulsory liquidation of the company, adding its staff will continue to be employed as the liquidator oversees the continuing operation of the main site in Scunthorpe, northern England.

The company is owned by an investment firm, Greybull Capital, British Steel employs around 5,000 people, mostly in Scunthorpe, while 20,000 more depend on its supply chain.

Greybull Capital said it had tried to keep British Steel alive but the challenges of Britain’s looming exit from the European Union proved insurmountable.