Jingye Group contracts to buy British Steel

Posted on: November 11th, 2019 by PhilM

The Official Receiver confirmed that a sales contract has been entered into with Jingye Steel (UK) Ltd and Jingye Holding Ltd to acquire the business and assets of British Steel Limited. 

The sale includes the British Steel steelworks at Scunthorpe, UK Mills and shares of FN Steel BV, British Steel France Rail SAS and TSP Engineering as wells as shares owned by BSL in Redcar Bulk Terminal Limited. 

The statement says the completion of the contract is conditional on a number of matters, including gaining the necessary regulatory approvals. The Official Receiver said 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. The statement added that support from employees, suppliers and customers since the liquidation has been a critical factor in achieving this outcome.
The statement did not confirm the value of the planned transaction or release any other details.

British Steel entered compulsory liquidation on 22 May 2019, following the a UK Government decision not to extend further financial support to the company, which was then owned by Greybull Capital.

The Jingye Group is based in China’s Hebei Province, and headquartered in Beijing. Group turnover in 2019 was reported at CNY 90.1 billion (around GB$ 10 billion). The Group ranks 217th amongst the top 500 Chinese enterprises and employs around 23,500. In addition to steelmaking it is involved in 3D printing, powder metallurgy, tourism, hotels and real estate. 

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