The Turkish Armed Forces Insurance Fund, known as Oyak, plans to take over British Steel, which is in serious financial trouble.
The specialist manager who took over British Steel after it went bankrupt in May announced that it had entered into exclusive negotiations with Atar Holding, Oyak’s investment arm, with the aim of selling the entire business in the “coming weeks”.
The specialist manager has already accepted Oyak’s preliminary proposal. The two sides are expected to finalize the deal after thorough scrutiny of the accounting books and after the bureaucratic procedures are completed.
The development gives hope to more than 4,000 workers in Britain’s second-largest steel industry, who are at risk of unemployment. British Steel has a large plant in central England, between the cities of Leeds, Hull and Sheffield and many smaller plants.
British media reports say the government will provide financial incentives to the Turkish side to finalize the deal.
Other prospective investors had expressed interest in British Steel, but some feared significant staff reductions. Oyak already has strong interests in Turkey’s steel industry.