China’s Jingye Steel will acquire the “business and assets” of British Steel, the UK government’s Insolvency Service announced on Monday.
Britain’s second-largest steelmaker was forced into liquidation in May, notably threatening thousands of jobs in Scunthorpe, a town in northeast England.
The government did not reveal the cost of the agreement, though in May it was reported the company needed to secure £75m (€85m).
The government announced the sales contract with the Chinese steel group on its website but stipulated that the “completion of the contract is conditional on a number of matters” including “regulatory approvals.”
Jingye Group did not immediately respond to a request for comment.
Gareth Stace, director-general of lobby group UK Steel, told the BBC Radio 4’s Today programme that the purchase would “complement” Jingye’s production and that it was a welcome investment from the Chinese group.
In August, a Turkish fund was reported to be the front-runner to buy the steelmaker.
