French rail giant in talks to buy British Steel division
A major French engineering firm is reportedly in talks to buy part of British Steel, as potential suitors look to carve up the collapsed company.
Systra, which specialises in transport infrastructure, is mulling a bid for wholly-owned subsidiary TSP Projects, Sky News reported.
Read more: British Steel inquiry delayed amid fears findings could affect sale process
British Steel is under control of the official receiver after collapsing into insolvency last month. Accountancy firm EY, which is advising the government on a potential sale of British Steel, has called for bidders to table offers by the end of June.
EY is resisting efforts to carve up the collapsed company out of fear it would undermine the wider aim of salvaging British Steel’s primary plant in Scunthorpe, Sky News reported, citing Whitehall sources.
It is believed the sale of TSP Projects to Systra would pave the way for a full break-up.
Separately, the Financial Times reported that a steel and mining group owned by Russian billionaire Roman Abramovic is also weighing a bid for part of British Steel.
London-headquartered Evraz, whose biggest shareholder is the Chelsea Football Club owner, is said to be mulling a bid for the group’s French business, which supplies rails for train lines.
Private equity firm Greybull Capital, which bought British Steel from Tata Steel for £1 three years ago, is also looking at the firm’s operations in France and the Netherlands.
Reading-based TSP Projects, which counts Network Rail and Siemens among its clients, is pushing for a sale to Systra, according to the report.
But the sale is said to be under scrutiny from The Pensions Regulator (TPR), which is reportedly insisting any buyer takes responsibility for the estimated £70m deficit in TSP’s retirement scheme.
Earlier this month MPs opted to delay an inquiry into the collapse of British Steel amid fears the findings could impede the sale process.
Read more: Public inquiry will probe Greybull’s role in collapse of British Steel
Roughly 5,000 jobs depend on the efforts to find a new buyer, while the company supports about 20,000 more jobs in its supply chain.
Systra and TPR have been contacted for comment.