LONDON: Britain’s government on Wednesday said it expected a Chinese takeover of bankrupt British Steel to “complete in the coming weeks” despite a report that London was exploring alternatives.

Chinese industrial giant Jingye Group in November agreed to buy British Steel, a former state-owned company, for an undisclosed amount.

But The Guardian newspaper on Wednesday reported that the UK government is holding talks with the Turkish conglomerate Cengiz Holdings amid fears that Jingye’s deal could still collapse.

Without providing any names, a spokesperson for the Department for Business, Energy and Industrial Strategy (BEIS), confirmed in a statement that “officials have met and continue to meet all parties interested in acquiring British Steel”.

The statement added: “The government believes the Jingye transaction will complete in the coming weeks.” Although the UK government has not taken the steel producer back into state ownership awaiting a buyer, it has been paying staff wages since the collapse in May.

Some 5,000 people are employed by British Steel, while another 20,000 jobs have links to its supply chain.

A total 4,000 British Steel staff work in the UK, with an additional 1,000 based in France and the Netherlands.

Before Jingye stepped in, Turkish military fund OYAK had in October pulled out of a deal to rescue British Steel, whose owners Greybull had blamed Brexit for its financial collapse.

Published in Dawn, January 23rd, 2020