Turkish steel group Cengiz Holding is likely to bid for British Steel in case its sale to Chinese steelmaker Jingye fails. Jingye acquisition of the British steelmaker is challenged by difficult negotiation with suppliers and employee unions.
British Steel is UK’s second largest steelmaker with facilities in Scunthorpe entered liquidation in May 2019. Jingye offered £50mn ($65.6mn) for the company and was chosen as the preferred bidder for British Steel by UK’s government, in November.
The UK government is likely to proceed with Jingye’s bids which faces several obstacles, including fraught negotiations with suppliers of British Steel and concerns among employee unions about jobs cuts and reduction of benefits.
Cengiz Holdings is seen as a potential bidder for British Steel. The company has secured major infrastructure projects in Turkey, including the construction of Istanbul’s new airport, advance rail transit and the Black Sea coastal highway project.