Turkish army pension fund to buy British Steel

The Turkish military pension fund OYAK said Friday it had signed a provisional deal to buy British Steel after the UK steelmaker was forced into liquidation in May.

OYAK said it hoped the takeover by its investment vehicle Ataer Holding would happen by the end of 2019 and was part of its “regional growth ambitions” in the steel sector.

The deal would save more than 4,000 jobs and was hailed by local politicians and associations in northeast England where the bulk of British Steel’s operations are based.

“This is an important and positive step forward,” Business Secretary Andrea Leadsom said in a statement.

“The UK has a long and proud history of steel manufacturing and I am committed to a modern and sustainable future for the industry, that is productive and supports a skilled and highly valued workforce,” she said.

Britain’s insolvency service, the Official Receiver, confirmed that it was in exclusive sales talks with Ataer, which has steel investments in Turkey.

The service said it had “received an acceptable offer from Ataer Holdings A.S. for the purchase of the whole business” and was focused on finalising the sale.

British Steel is in the meantime supplying customers as normal, it added.

After British Steel entered insolvency, UK authorities put the company up for sale and nearly 80 bidders including steel producers sought to buy it, OYAK said.

The exclusivity deal gives OYAK time to hold talks with customers, suppliers, employees and trade unions, and carry out a detailed inspection, due to be completed by September.