The muddy story with the sale of British Steel to the Turks may end in a complete fiasco
Turkish Oyak Ataer wants to revise all contracts for the supply of raw materials and services to British British Steel before purchasing. This could be an insurmountable obstacle to the exit of the second largest steel company in the UK from bankruptcy.
Oyak's Ataer Holding's due diligence over the past two months has shown some of the deals were uncompetitive and wants to be renegotiated, Bloomberg reported, citing an anonymous source in the Turkish company.
Nevertheless, according to Bloomberg, the Turkish investor still wants to buy British Steel, although the negotiation process is clearly delaying to the displeasure of the unions.
British Steel filed for bankruptcy in May, just three years after it was acquired by private equity firm Greybull Capital LLP for £ 1.
Sky News reported earlier this month that China's Jingye Group has expressed interest in acquiring British Steel.
Oyak Ataer is the largest shareholder in Turkey's largest steel producer Eregli Demir ve Celik Fabrikalari TAS, known as Erdemir, a key steel exporter to the EU. The group is also a co-owner of the smaller metal producer Iskenderun Demir ve Celik AS.