Tata Steel UK Business to be Purchased by Chinese Jingye Group

SEATTLE (Scrap Monster): In the midst of reports of Tata Steel’s ongoing efforts to rescue the UK steel business, the Chinese steelmaker Jingye Group is said to have expressed an interest in acquiring the steelmaking assets.

The Chinese firm has expressed ‘tentative’ interest to Tata Grouo as well as the UK government. However, there has been slow progress in negotiations. It must be noted that the Jingye Group had purchased the assets of British Steel, earlier during this year, thus saving around 3,000 jobs. Meantime, reports indicate that a formal offer for takeover has not been made yet.

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Tata Steel had sought financial assistance of £500 million loan against the Coronavirus crisis from the UK government. However, this plea was rejected. Later, it put forward the request for £900 million of government cash, by offering up to 50 per cent equity stake in its UK business in return. No further proposals were made by the company. As per reports, the company is in carrying out talks with the government on potential assistance to save nearly 8,000 jobs.

Jingye Group aims to reunite Port Talbot and Scunthorpe steelworks under common ownership. The Group is believed to have strengthened its interest in Port Talbot. The acquisition of two major steelworks is feared to attract political scrutiny.