According to local media, Chinese group Jingye which took control of British Steel earlier this year has set its sights on acquiring the biggest steel producer in the UK, i.e., Tata Steel UK, which is the owner of the vast Port Talbot plant in South Wales.
In fact, Jingye Group has told Tata Steel UK’s parent company Indian steelmaker Tata Steel and the UK government that it is keen to explore a takeover of Britain’s largest steel producer. There is no formal sale process at this stage though.
Tata Steel employs about 8,000 workers in the UK, with about half of those at Port Talbot. Tata Group sought financial assistance from the UK government after its business was hurt by the Covide-19 pandemic, but talks between the parties did not make significant progress after investment bankers were hired to form a rescue plan.
If Jingye acquires Tata Steel UK, it would reunite the Port Talbot and Scunthorpe steelworks – the two largest in the UK – under common ownership.
