British Steel To Be Taken Over By Turkish Army's Pension Fund

16 August 2019, 11:53

The company behind Turkey's military pension fund is in exclusive sales talks with Government officials after British Steel collapsed into insolvency in May.

The Turkish company, Ataer Holdings, an affiliate of OYAK, has been revealed as the preferred buyer for British Steel.

OYAK has reached a provisional agreement to buy the company based in Scunthorpe, North Lincolnshire where 3,000 people work.

The steel firm employs another 800 on Teesside.

At the time it went into liquidation, the Government chose not to provide previous owner Greybull Capital with a 30-million pound rescue package.

The provisional deal reached with OYAK could save 4,000 jobs.

OYAK is based in the Turkish capital, Ankara. It has reportedly drawn up plans that would include £900m in investment as it aims to double production at the Scunthorpe plant.

Ataer Holdings now has exclusive rights to look into Britain’s second-largest steelmaker in greater detail over the next two months as part of due diligence.

The full transfer of ownership to pension fund OYAK is expected to take place before end of the year.

Since its collapse into liquidation, British Steel ‎has been funded through a taxpayer-backed indemnity and is estimated to be losing around £5m a week.

Business Secretary Andrea Leadsom welcomed the provisional deal, noting that the UK has "a long and proud history of steel manufacturing."