Turkish OYAK reaches provisional deal to buy British Steel
Turkey's military pension fund OYAK announced Friday that it has reached a provisional agreement to take over British Steel, with plans to close the deal by the year-end.
The pension fund of the Turkish Armed Forces has reached a preliminary agreement to acquire U.K.-based industrial giant British Steel, said a written statement on Friday.
In line with its regional leadership target, Ataer Holding, a subsidiary of OYAK, the pension fund, made an offer to buy the steel producer, said the statement.
The British fund was put on the market by the official authority this May due to financial woes.
Around 80 steelmakers made offers for British Steel and declared their strategic plans for the company.
But Ataer Holding was the only company to acquire the right to analyze British Steel's finances, operations, and legal structure for the next two months.
"If the detailed analysis process results in success in October 2019, the handover is expected to be finished during 2019," OYAK said.
British Steel, with a heritage of 150 years, has production activities in the U.K., France, and the Netherlands.
It has the capacity to produce 4.5 million tons of raw steel annually, and manufactures rail, construction steel, special profiles, and wire rod.
OYAK, established in 1961, is active in several sectors including mining, cement, automotive, finance, chemistry, metallurgy, and energy.
Its assets and exports reached $19.1 billion and $4.7 billion, respectively, as of the end of 2018.