China's Jingye Group to rescue British Steel
The corporation has agreed in principle to buy the British company for £70m
Stocks impacted: Ningbo Fubang Jingye Group Co., Ltd. (600768), British Steel Ltd.
The Chinese industrial giant could buy the UK steelmaker British Steel out of liquidation. The deal that may reach £70million is expected to save around 4,000 jobs in the UK. The Chinese firm has in principal agreed to absorb the company and staff into its existing steel and manufacturing division. The corporation has more than 22,000 employees and assets valued at more than £3bn. As a reminder, British Steel plunged into liquidation in May and has been kept running by the government since then. Jingye Group has promised to increase production but has also warned costs may need to be cut after the deal. Jingye Group Co. stocks declined nearly 2.5% on Monday, along with most Asian markets amid a new wave of protests in Hong Kong.
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