Skip to content
Search

Latest Stories

Bidders scramble to break up British Steel: Sources

STEELMAKERS and private equity firms are only working on proposals for parts of collapsed British Steel ahead of a June deadline for binding bids, sources close to the process said.

None of the potential buyers, which include GFG Alliance and former owner Greybull, would be willing to take on the whole company, even for a nominal sum, because of the capital expenditure required to make it profitable after years of underinvestment, the sources said.


They added that June 12 is the deadline for binding bids for the country's second largest steel producer.

British Steel, which produces high-cost long steel products used in construction and rail networks, was put into compulsory liquidation on May 22, jeopardising 5,000 jobs at the company and a further 20,000 more in the supply chain.

Unions oppose a break up of the business, making any partial sale politically difficult, but the British government is under pressure to find a quick solution as it potentially faces a wage bill of around £250 million a year until a buyer is found, one of the sources said.

GFG Alliance, a privately held conglomerate led by Sanjeev Gupta, is likely to make an offer for operations that have synergies with their existing steel assets in the region and the more profitable ones, a second source said.

GFG, via its Liberty House unit, bought Scunthorpe-based Caparo Merchant Bar, which produces steel bars for construction, energy and infrastructure, from administrators in 2017.

GFG Alliance declined to comment.

Greybull Capital, which paid former owners Tata Steel a token one pound for British Steel three years ago, is interested in buying its operations in France and the Netherlands, which specialise in rail, wire and processing, one of the sources said.

"We will explore all options to help the company find the best sustainable solution for the good of its employees, customers and all involved," Greybull told Reuters in an emailed comment.

British Steel's advisor EY has also reached out to other European steelmakers including Italy's Marcegaglia Group, AFV Beltrame Group and Acciaierie Venete, and also international players such as India's JSW Group and Posco Steel, two of the sources said.

Private equity firm Endless, which was a bidder for the steel assets at the time of the Greybull takeover, could also make a proposal, they said.

Not all of those contacted were likely to bid. Marcegaglia, for instance, will not do so as it does not see synergies with the British producer, a source close to the company said.

Across Europe, the steel industry is struggling with cooling demand and growing supply, in part as steel tariffs deflect supplies from the US, steelmakers say.

Analysts have said more consolidation of the European steel industry is inevitable.

Gupta's Liberty House Group is already buying assets across Europe after the European Commission approved ArcelorMittal's purchase of Ilva on condition it sold off works in Romania, the Czech Republic, Italy, Belgium, Luxembourg and North Macedonia.

(Reuters)

More For You

Piyush Goyal

Piyush Goyal recalled that in February, Narendra Modi and Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025. (Photo: Getty Images)

Getty Images

Trade talks with US moving forward positively, says Indian minister Goyal

INDIA’s commerce and industry minister Piyush Goyal on Thursday said that negotiations on the proposed trade agreement between India and the United States, which began in March, are progressing in a positive atmosphere and both sides are satisfied with the discussions.

He recalled that in February, Indian prime minister Narendra Modi and US president Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025.

Keep ReadingShow less
Baiju Bhatt

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. (Photo: Getty Images)

Baiju Bhatt named among youngest billionaires in US by Forbes

INDIAN-AMERICAN entrepreneur Baiju Bhatt, co-founder of the commission-free trading platform Robinhood, has been named among the 10 youngest billionaires in the United States in the 2025 Forbes 400 list.

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. Forbes estimates his net worth at around USD 6–7 billion (£4.4–5.1 billion), primarily from his roughly 6 per cent ownership in Robinhood.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London. (Photo: Getty Images)
Getty Images

Economy shows no growth in July amid political turbulence

UK's ECONOMY showed no growth in July, according to official data released on Friday, adding to a difficult week for prime minister Keir Starmer’s government.

The Office for National Statistics (ONS) said gross domestic product was flat in July, following a 0.4 per cent rise in June.

Keep ReadingShow less
India’s IT sector

India’s $283 billion IT industry, which contributes more than 7 per cent to the country’s GDP, has for over three decades provided services to major clients including Apple, American Express, Cisco, Citigroup, FedEx and Home Depot.

iStock

India’s IT sector faces uncertainty as US proposes 25 per cent outsourcing tax

INDIA’s IT sector is facing uncertainty as US lawmakers consider a 25 per cent tax on companies using foreign outsourcing services.

Analysts and lawyers said the proposal has led to customers delaying or re-negotiating contracts, raising concerns in India, the world’s largest outsourcing hub.

Keep ReadingShow less
Rachel Reeves

'Our economy isn't broken, but it does feel stuck,' Reeves said, speaking alongside the release of a finance ministry report on business property taxation, known as rates.

Getty Images

Reeves signals possible changes to business property taxes ahead of budget

CHANCELLOR Rachel Reeves said on Thursday she is considering changes to business property taxes to support small firms looking to expand, as part of her plans to boost growth.

Reeves’ comments come ahead of her annual budget on November 26, at a time when concerns about possible tax rises and inflation are weighing on businesses and households.

Keep ReadingShow less