JSW Steel, the Mumbai-based metal-to-cement Indian conglomerate having had footprints on more than 140 countries, has been contemplating a bid to purchase Liberty Steel in UK alongside other mills elsewhere, people familiar with the issue had unveiled on Saturday on condition of anonymity given the sensitive nature of the subject-matter.
In point of fact, latest move from the largest steel producer in India, JSW Steel, to expand its grasp into British soil, came forth as a number of buyers were reportedly whirling around Sanjeev Gupta’s beleaguered global commodities empire.
On top of that, a takeover deal from JSW Steel for Gupta’s metal enterprise in Britain seems feasible as Gupta had been struggling to refinance his group following a bankruptcy filing of his main source of funding, the British supply chain finance firm Greensill, while a remark from Britain Serious Fraud Office this month that said it had been probing Gupta’s businesses alongside their tie-ups to Greensill, added to further strains.
JSW Steel eyes takeover of Gupta’s British businesses
Nonetheless, although, JSW Steel had issued a statement on Saturday saying that the Indian conglomerate had been focusing on its Indian business and had no plans to acquire overseas assets, sources familiar with the proceedings were quoted saying that the metal-to-cement conglomerate, JSW Group’s owner, Sajjan Jindal, was interested to place a bid for Gupta’s British holdings, however, there would likely to be hindrances to a deal given the fiscal fallouts of Brexit alongside India’s pandemic crises, suggested analysts.
In tandem, a successful acquisition of Gupta’s British businesses alongside his Adhunik mill in eastern India, would mark off a landmark deal for British steel industry, which has long been privatizing and handing over assets to foreign buyers in context of a clattering downturn in the country’s manufacturing activities.