Abu Dhabi steel group eyes takeover of Gupta's UK empire

A UAE-based alloy institution has made an attack to bargain Britain's third-biggest alloy producer, months aft it was declared "hopelessly insolvent" and fell into the hands of the Official Receiver.

Sky News has learnt that Arabian Gulf Steel Industries (AGSI), which is headquartered successful Abu Dhabi, is among a tiny fig of parties which person lodged proposals to instrumentality power of the Speciality Steels UK (SSUK) concern which until past summertime was owned by the metals tycoon Sanjeev Gupta's Liberty Steel empire.

The concern collapsed into compulsory liquidation successful August, sparking a scramble successful Whitehall to find a purchaser for it arsenic portion of efforts to sphere the UK's steelmaking capabilities.

The SSUK concern operates sites astatine Rotherham and Stocksbridge successful South Yorkshire, and crossed its operations employed adjacent to 1,500 radical erstwhile it collapsed past summer.

This weekend, it was unclear however precocious immoderate discussions were betwixt AGSI and the Official Receiver, portion the presumption of immoderate connection were besides unclear.

One root suggested that AGSI mightiness beryllium keen to unafraid fiscal backing from Britain's National Wealth Fund to enactment a takeover of SSUK and money a resumption of steelmaking astatine its sites successful Yorkshire.

AGSI describes itself connected its website arsenic "the epitome of Net Zero steel", and has pledged to nutrient 5 cardinal tons of alloy by 2030, portion reducing c dioxide emissions by much than 95% compared to accepted steelmaking processes.

The institution is privately owned and tally by its laminitis and main executive, Asam Hussain.

AGSI did not respond to an emailed petition for comment, but 1 root expressed scepticism that it would yet get the Liberty Speciality Steels business.

A fig of different parties person besides expressed involvement successful buying the operations successful caller months.

Mr Gupta himself had secured backing from 3rd parties including Blackrock, the world's biggest plus manager, though the imaginable of him being chosen to repurchase the concern appears to beryllium highly remote.

An Insolvency Service spokesperson said: "We tin corroborate that the Official Receiver continues to advancement bids for the merchantability of Speciality Steel UK.

"The income process is ongoing, with the purpose to implicit a merchantability astatine the earliest opportunity."

In effect to an enquiry from Sky News, a authorities spokesperson said: "We stay committed to a agleam and sustainable aboriginal for steelmaking and steelmaking jobs successful the UK.

"The autarkic Official Receiver is carrying retired his duties arsenic liquidator, portion we besides marque definite unit and section communities are supported."

The National Wealth Fund failed to respond to an enquiry from Sky News.

The merchantability process for SSUK comes during a play of broader uncertainty for the British alloy sector, against the backdrop of President Trump's tariffs authorities and a continued planetary glut of the metal.

In November, Sky News revealed that ministers were drafting successful bankers astatine Evercore to behaviour a reappraisal of options for the industry.

Peter Kyle, the concern secretary, and UK Government Investments (UKGI), the Whitehall bureau which manages taxpayers' interests successful a scope of companies, including the Post Office and Channel 4, are expected to see whether to merge immoderate of the remaining companies successful the sector.

These would see British Steel, the Scunthorpe-based shaper which is legally owned by China's Jingye Group but which was seized by the authorities past April amid a menace to adjacent its remaining blast furnaces.

So far, the authorities has spent hundreds of millions of pounds connected moving British Steel.

The government's determination prevented the contiguous nonaccomplishment of much than 3,000 jobs, though determination stay questions astir the company's viability arsenic a standalone entity.

"We proceed to enactment with Jingye to find a pragmatic, realistic solution for the aboriginal of British Steel," Chris McDonald, the manufacture minister, said successful a connection to parliament successful November.

"Our semipermanent aspiration for the institution volition necessitate co-investment with the backstage assemblage to alteration modernisation and decarbonisation, safeguard taxpayers' wealth and clasp steelmaking successful Scunthorpe."

In 2024, ministers agreed to supply £500m successful assistance backing to Tata Steel, the Indian company, to instal an electrical arc furnace astatine its Port Talbot steelworks successful Wales.

The caller installation is expected to beryllium operational successful 2027, but has been bitterly opposed by commercialized unions infuriated that the caller backing was efficaciously utilized to thrust done thousands of redundancies astatine the plant.