China's Industrial Giant to Buy Bankrupt British Steel

Chinese industrial giant Jingye Group has agreed to buy bankrupt British Steel for an undisclosed amount, the official receiver said Monday in a rescue deal that saves thousands of jobs.

Jingye added separately that it would invest 1.2 billion pounds($1.5 billion, 1.4 billion euros) over the next decade to place the business, which collapsed in May, on a competitive and sustainable footing.

“The Official Receiver and Special Managers from EY can confirm that a sales contract has been entered into with Jingye Steel (UK) Ltd and Jingye Steel (UK) Holding Ltd to acquire the business and assets of British Steel Limited,” read a statement. A source had already confirmed to leading international media agency AFP that a deal was in the works earlier on Monday, amid press reports that Jingye would pay 70 million.

Jingye will purchase British Steel’s sprawling steelworks at Scunthorpe, northern England, as well as its other UK mills.

The deal also includes the company’s stakes in Dutch steelmaker FN Steel, British Steel France, and specialist UK manufacturer TSP Engineering.