Future of British Steel is in doubt again as takeover talks with Turkish pension fund end and receiver starts looking for alternative buyers
- The Government's Insolvency Service has been seeking a buyer for British Steel
- The Official Receiver has been in talks with Turkey's Ataer Holdings over a deal
- An exclusive two-month period of negotiations will finish at the end of the week
- British Steel employs around 5,000 people in Scunthorpe and Teesside
The identity of the new owner of British Steel was once again in doubt on Wednesday as the Official Receiver responsible for selling the business said it will start talking to other potential suitors.
The decision by the Government's Insolvency Service comes as a two-month period of exclusive talks between the department and Ataer Holding ends this week.
The Official Receiver said: 'While discussions with Ataer are continuing, discussions with other parties who have expressed continued and renewed interest in acquiring the whole British Steel business will now be possible.
The future of British Steel was again in doubt after the Official receiver announced that a two-month period of exclusive talks with the Turkish military pension fund has ended without agreement
The failure to secure a deal will be concern to British Steel's 5,000 employees and a further 20,000 people in the supply chain
'I have instructed the Special Managers to engage with these additional interested parties. Diligence team members from these parties are expected to visit the company's sites over the coming days and weeks.'
Previous reports have suggested that investment vehicle Ataer, which is controlled by Turkey's military pension fund, is concerned at the lack of progress to push through price cuts with suppliers.
But the Official Receiver insisted: 'Ataer remain very much interested in acquiring the business and we remain in detailed discussions with them to conclude a sale.'
The news is expected to cause concern among British Steel's 5,000 staff, including 4,000 at its plant in Scunthorpe, and a further 700 on Teesside in north-east England.
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The company is also indirectly responsible for 20,000 workers in the supply chain and produces around 2.5 million tonnes of steel a year.
The Unite union called on Business Secretary Andrea Leadsom to guarantee the Government's continued support for British Steel and honour previous commitments on research and investment necessary to facilitate the smooth sale of the steelmaker.
Assistant general secretary for manufacturing Steve Turner said: 'I have written to the Business Secretary Andrea Leadsom requesting an urgent meeting.
'It is vital that the Government continues to stand behind British Steel until the sale process is finalised to maintain customer, supplier and workforce confidence in a company which can have bright future.
'This includes honouring commitments on research and investment which assist the smooth sale process of British Steel and a recognition that the success of the steelmaker is central to any future UK industrial strategy.'
Ataer, which invests funds for the Turkish Armed Forces Assistance Fund - or Oyak - already owns nearly 50% of Turkey's biggest steel producer, Erdemir.
However, there has been criticism that the company is too close to the Turkish government and lacks accountability.
British Steel was put into compulsory liquidation in May after talks between previous owner Greybull and the Government collapsed, leading the business to be run by the Official Receiver.
Previous reports had suggested that Oyak wants to buy British Steel as the first step to buying up steel assets across the world.
Who are Greybull Capital?
Marc Meyohas of Greybull Capital stands in front of the British Steel sign, 2016
Greybull Capital are the private equity firm who bought British Steel for a token £1 in 2016.
British Steel has now gone into official receivership after failing to secure government funding for its future, and now faces liquidation.
Brothers Nathaniel Meyohas, 46, and Marc Meyohas, 43, are part of a wealthy French family and made their fortune by investing in private equity.
The brothers set up Greybull in 2010 - but have been marred by a series of failures.
Up until the recent trouble with British Steel, the airline Monarch, which collapsed in 2017, was the most high-profile business to fall while owned by Greybull.
Nearly 1,900 workers were left redundant when Monarch went bust, forcing authorities to step in and help more than 100,000 holidaymakers get home - reportedly the biggest repatriation since World War Two.
Greybull had pumped £125million into Monarch in 2014 with hopes of preventing it from failure.
The fund had also bought My Local convenience chain for £25 million, only for it to collapse in 2016.
It was also part of a group of investors that backed the acquisition of Comet, shortly before it too collapsed - leaving the taxpayer with a reported £23million bill.
Greybull Capital are the private equity firm who bought British Steel for a token £1 in 2016 (pictured: Nathaniel Meyohas, Partner, Greybull Capital)
Greybull also oversaw Rileys Sports Bars, which fell into administration in September 2014.
The firm describe themselves as 'an entrepreneurial investment group, whose purpose is to improve businesses for all stakeholders'.
Their stated aim is to make companies successful by 'collaborating with management teams and employees and by investing our capital, time and expertise', with the hope of adding 'substantial value' to companies they take on.
Greybull invests wealth from two families - the Perlhagens, from Sweden, who made their fortune in pharmaceuticals, and Turkey's Meyohases.
Insolvency experts familiar with Greybull described its strategy and boss as sharp-elbowed, secretive and unafraid of publicity or taking big risks, the Times reported.
Pictured: Greybull Capital's office in London's Knightsbridge
In 2016 the secretive brothers behind Greybull warned that the rescue of British Steel might not work out.
On the first day of trading as British Steel it announced an investment package of £400million and revealed the business had been profitable for months.
But Greybull partner Marc Meyohas was cautious about the future, previously telling the Mail: 'We are the first to admit not every company we back will be a success – we don't hide from that fact.
'We conduct a difficult process investing in troubled assets which we try to turn around – we are not going to have a 100 per cent success rate. On the whole we try to get more right than wrong.'
The French-born brothers work with Swede Richard Perlhagen – the two families go back decades – and Greybull was set up to invest their combined fortunes.
Former Lehman Brothers banker Daniel Goldstein is the fourth partner, and it was previously reported that all are resident in the UK, working from Greybull's office in London's Knightsbridge.
Previous investments have included Plessey Semiconductors and retailer Game Group.
The Comet investment was seen as a dark period for Greybull, with some accusing it of profiting while workers were made redundant.
Meyohas said: 'We are sorry for what happened to Comet. It's annoying to be referred to as guys involved with that. We had a tiny holding and no board position, so had little control.'
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