Abu Dhabi, UAEFriday 6 December 2019

Turkish military pension fund in talks to buy British Steel

Ataer Holding already owns a Turkish steel group

A general view shows the British Steel works in Scunthorpe, Britain. REUTERS/Scott Heppell
A general view shows the British Steel works in Scunthorpe, Britain. REUTERS/Scott Heppell

An investment group owned by Turkey’s military pension fund is in discussions for the potential takeover of British Steel.

The UK government is in talks with Ataer Holding to rescue the beleaguered steelmaker, the Financial Times reported on Thursday.

Ataer is looking for financial undertakings from Britain’s government but doing so could come up against EU rules that restrict state aid for companies.

Ataer Holding, owned by Turkish state military retirement scheme Oyak, is also the largest shareholder in Turkish steel group Erdemir with a 49.3% stake.

A search for a buyer of the steelmaker has been underway since British Steel collapsed in May.

British Steel employs 5,000 workers mostly at its Scunthorpe plant, one of the UK’s two remaining blast furnace steelworks.

An estimated 20,000 jobs in its supply chain are dependent upon the company elsewhere.

Shops, cafes and other businesses in the town of Scunthorpe rely on the vast number of workers at the steelmaker and could see a knock on effect if the

The Turkish bid reportedly looks to install a new furnace at the Scunthorpe plant and convert the entire plant into using gas over the next decade.

British industrial group Liberty House has tabled a rival bid.

Updated: August 8, 2019 08:02 PM

SHARE

SHARE