EY negotiates British Steel sale to China's Jingye
14 Nov 2019
The Official Receiver and administrators at EY have secured a deal to sell British Steel to Chinese steel giant, Jingye Steel (UK) Ltd and Jingye Steel (UK) Holding Ltd, subject to regulatory approval
14 Nov 2019
As part of the deal, Jingye will acquire the business and assets of British Steel Limited (BSL), including the steelworks at Scunthorpe, UK mills and shares of FN Steel BV, British Steel France Rail SAS and TSP Engineering. The sale also includes the shares owned by BSL in Redcar Bulk Terminal Limited.
Completion of the contract is conditional on a number of matters, including gaining the necessary regulatory approvals. The parties are working together to conclude a sale as soon as reasonably practicable.
The business will continue to trade as normal during the period between exchange and completion. Support from employees, suppliers and customers since the liquidation has been a critical factor in achieving this outcome.
British Steel was put into compulsory liquidation on 22 May after a rescue deal failed, putting 4,000 jobs at risk. In April the company indicated it was in serious financial trouble, borrowing £100m from the government to cover an EU carbon bill.
Throughout the liquidation period, British Steel has continued to trade as normal.