Oyak, the biggest complimentary pension fund in Turkey, said one of its units, Ataer Holding, has signed an exclusivity agreement to buy British Steel as part of its regional growth ambitions in the steel industry.
A major player in the EU region, British Steel went into compulsory liquidation on May 22. The company boasts about 3 million MT annual production capacity in the UK, France and the Netherlands.
The handover of the crisis-hit company is likely to take place by the year end, it stated.
On the acquisition, Oyak General Manager Süleyman Savas Erdem said: "We believe in the importance of merging world league players into our group. Accordingly, we have achieved one of the biggest achievements of the Turkish steel industry and signed a preliminary agreement to buy the industrial giant of UK, British Steel."
"We will continue to evaluate opportunities globally inline with our growth-oriented vision and we will continue our investments to provide sustainable high benefit to our members," remarked Erdem.
"Ataer Holding, with its strategic vision for British Steel, differentiated from other bidders and received exclusivity to conduct detailed financial, legal and operational review for a period of two months," he added.
Oyak is the largest shareholder in Erdemir, the nation’s biggest steel producer. In addition to iron and steel, the Turkish group has interests in sectors including cement, automotive, agriculture and energy.
Oyak Mining Metallurgy Group Head Toker Ozcan said: "Through the acquisition of British Steel, our group will increase its effectiveness in the value chain and the weight of value-added products in its final product portfolio. We will continue to monitor global markets and take proper actions to contribute to our strategic goals."
"The acquisition of British Steel under Ataer umbrella is the first step taken in the future plans of our Group. Our priority will be to increase the production capacity and to invest in clean steel production in British Steel," he added.-TradeArabia News Service