Drinks are on us, say Chinese as purchase of British Steel is announced in a Scunthorpe bar

steel

Officials from China’s Jingye Group bought everyone in Scunthorpe’s Mulligan’s Bar a drink on the back of announcing a rescue deal for British Steel.

The Chinese company, understood to have been in Scunthorpe for two or three weeks on a due diligence exercise, has agreed in principle to buy the steelmaker or £70m.

British Steel has been kept running by the government via the Official Receiver since May, when the company went into liquidation, and will continue to be run this way for at least a month.

British Steel employs about 4,000 people in Scunthorpe and Teesside, as well as up to 1,000 in France and the Netherlands.