British business of Tata Steel will be acquired by Chinese Jingye Group

Chinese steelmaker Jingye Group has reportedly expressed interest in acquiring steel assets amid reports of Tata Steel’s ongoing efforts to rescue the UK steel business.

The Chinese firm has shown “tentative” interest in Tata Grouo as well as the UK government. However, negotiations are progressing slowly. It should be noted that the Jingye Group acquired the assets of British Steel earlier this year, thus saving about 3,000 jobs. Meanwhile, according to reports, a formal takeover offer has not yet been received.

Tata Steel has applied for £ 500 million in financial assistance to prevent the coronavirus crisis from the UK government. However, this application was rejected. She later applied for £ 900 million in government funds, offering in return up to 50% of her British business. There were no additional offers from the company. The company is reportedly in talks with the government for potential help to save nearly 8,000 jobs.

The Jingye Group seeks to consolidate the Port Talbot and Scunthorpe steel mills under common ownership. The Group is believed to have increased its interest in Port Talbot. There are concerns that the acquisition of the two large steel mills will attract political attention.

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