Sajjan Jindal-promoted JSW Steel plans to bid for the insolvent British Steel before the June 30 deadline. The plant is now owned by private investment firm Greybull Capital plc, which had acquired the asset from Tata Steel for £1 in 2016.
Sources close to JSW Steel said the company is in touch with the official receiver of British Steel and is working on a competitive bid. Almost 80 companies including South Korean steel major Posco are also believed to be in the race.
British Steel was put into compulsory liquidation last month after talks between the UK government and Greybull over a rescue package collapsed.
The acquisition of British Steel will not stress JSW Steel’s balance-sheet as the valuation is expected to be on the lower side, said a source.
In response to BusinessLine ’s query, JSW Steel said it does not respond to market rumours and speculation.
While being selective in bidding for stressed assets in India, JSW Steel has acquired quite a few stressed assets globally.
International push
Last year, it acquired Italy’s second largest steel producer, Aferpi, for ₹600 crore.
In the US, it bought a majority stake in troubled Acero Junction Holdings for about ₹550 crore and took over a 3-million-tonne hot strip mill in Delaware.
JSW Steel also recently earmarked an investment of $1 billion in its existing steel making capacity in Texas and Ohio.
Second time lucky?
JSW Steel had made an attempt to acquire British Steel from Tata Steel in 2016 but did not succeed. Whether it will make it this time amid intense competition from global rivals is to be seen. Tata Steel had taken over British Steel as part of its acquisition of Corus in 2007.
British Steel, one of the world’s largest steel producers, employs about 5,000 people and has production facilities in the UK, France and Netherlands. It specialises in making long steel used in construction.