Turkey’s military pension fund reaches British Steel deal

Oyak, the Turkish military’s $18 billion pension fund, reached a preliminary agreement to buy British Steel out of bankruptcy. No financial terms were disclosed, but The Guardian reports that Oyak would pay £70 million for the business and commit to invest another £900 million to double production capacity.

-Why it’s the BFD: The deal could save nearly 5,000 jobs and the broader British steel-making industry, once the world’s largest but since hollowed out by decades of financial pressures (the latest of which is Brexit).

-Backstory: Private equity firm Greybull Capital bought British Steel in 2016 for just a single pound, but the company fell into liquidation this past May. Oyak already holds major stakes in Turkish steelmakers via its Ataer unit.

-Bottom line: “EU steelmakers have been at odds with Turkey as they debate safeguards to protect themselves from the impact of U.S. trade tariffs. The tariffs have pushed surplus steel into Europe, especially from Turkey, which has overtaken China as the EU’s biggest foreign steel supplier.” — Reuters

 
Πηγή: axios.com