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ArcelorMittal, one of the largest steel producers in the world, is one of several companies willing to work in the steel mills of the French tycoon associated with metal Sanjeev Gupta.
German steelmaker Saarstahl and Italian Beltrame Group are also looking to buy Gupta’s French plants Ascoval and Hayange, sources familiar with the situation have confirmed.
ArcelorMittal has not commented. Saarstahl and Beltrame could not comment.
The Financial Times revealed earlier this month Gupta’s Liberty Steel, the steel department of its metal conglomerate, the GFG Alliance, put up for sale two plants in northeastern France after it was not refinanced.
Liberty Steel bought the Hayange mill last August after the former British Steel operator went bankrupt.
Ascoval Greybull Capital, a private investment company that owned UK steel, controlled and bought Liberty at the same time.
GFG has been trying to find new sources of funding since Greensill Capital’s main lender fell into administration in March.
The band has also played suspected fraud, Which is being investigated by the Office of Serious Fraud.
The government is closely monitoring the sale of the two French plants.
Hayange, near the German border, is considered a strategic national asset because it makes steel rails for French railways and the Paris metro. Ascoval uses an electric arc furnace to recycle scrap.
The French government granted a loan of 20 million euros to the two plants in March. He said he is ready to help staff and sites affected by the GFG problems, but will not rescue shareholders. The loans were granted on condition that the company could obtain new financing.
The formal sale process began in late April, according to a person familiar with the situation. Rothschild is advising to sell.
GFG said it remains “confident” in securing new funding, given the strength of the steel market, even though the two sites have seen a “significant reduction in working capital” since the fall of Greensill.
“At the same time, we are taking prudent steps to explore the sales opportunities of these businesses and invite interested parties to submit bids,” the company added.
GFG sells three UK steel specialties, including operations in Stocksbridge, Yorkshire, as it aims to prevent a wider collapse.
Sources familiar with the situation said several potential stakeholders have appeared in recent days.
GFG has been trying to refinance British operations, but spoke to White Oak Global Advisors, a private US financial group, after the SFO probe broke. GFG said it will cooperate with the investigation.
The Jingye Group, the Chinese owner of British Steel, has told government officials Ready to take the step to take parts of Liberty Steel. However, it is understood that the company is particularly interested in the Liberty steelworks in Rotherham, as GFG has said it is not for sale.
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