Turkish army pension fund set to buy British Steel

Steel production at British Steel's Scunthorpe plantImage copyright Getty Images

The Official Receiver is to announce this week that an investment arm of Turkey's armed forces pension fund is the preferred bidder for British Steel.

Ataer Holding would then be given several weeks to try to buy British Steel – the owner of the Scunthorpe works – out of insolvency.

British Steel was put into compulsory liquidation in May, when the Official Receiver was appointed.

Ataer owns nearly 50% of Erdemir, Turkey's biggest steel producer.

It is the investment vehicle of the Turkish Armed Forces Assistance Fund (known as OYAK), the pension fund for the country's armed forces.

Some 5,000 jobs were put at risk – and 20,000 in the supply chain – when talks broke down in May between the government and British Steel's owner, Greybull.

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