Linklaters advised Chinese steelmaker on British Steel takeover
Iclg - British Steel has completed the sale of its United Kingdom and Netherlands assets to Chinese steelmaker Jingye Group.
British Steel entered into insolvency proceedings in May last year, after which special managers and the official receiver were appointed from Ernst & Young.
As part of the rescue proceedings, the takeover transaction includes the sale of British Steel’s steelworks at Scunthorpe, mills at Skinningrove and Teesside, and two subsidiaries of British Steel, TSP Engineering and FN Steel.
Jingye Group, headquartered in Pingshan Town, Shenzhen, specialises predominantly in steel and iron production.
The company said it aimed to build British Steel back up to financial health and put it on a sustainable path within five years. The acquisition, which has been supported by the United Kingdom’s government, is expected to safeguard around 3,200 jobs.
Jingye will also inject GBP 1.2 billion into technologies and new products for the company’s markets worldwide, which the UK’s Prime Minister, Boris Johnson, described as “a welcome boost that will not just secure thousands of jobs, but ensure British Steel continues to prosper”.