British Steel inquiry delayed amid fears findings could affect sale process
MPs have delayed an inquiry into the collapse of British Steel until the Autumn, amid fears the findings could hurt efforts to find a new owner.
The influential Business, Energy and Industrial Strategy Committee group of MPs was set to grill Marc Meyohas, a partner at British Steel’s former owner Greybull Capital, on 26 June. But they have pushed the hearing back to September, after the House of Commons returns from its summer recess.
Read more: Public inquiry to probe Greybull’s role in British Steel collapse
“The Beis Committee has delayed the beginning of this inquiry to allow there to be full focus in the coming weeks on attempts to find a buyer for British Steel,” it said.
The Official Receiver is in the process of finding a buyer for the company, which is still trading after going into liquidation last month. About 5,000 people’s jobs depend on the efforts, while the company supports around 20,000 more jobs in its supply chain.
CityAM understands officials working on finding a deal fear evidence unearthed during the inquiry could affect the sale process.
The committee hopes to hold evidence sessions with trade unions Unite and Community Tata Steel, Liberty Steel, UK Steel and business secretary Greg Clark.
Prime Minister Theresa May yesterday held talks with MPs who represent constituencies affected by British Steel’s collapse. Scunthorpe MPs Nic Dakin and Andrew Percy demanded May commit the government to striking a steel sector deal, to bolster the struggling industry.
Speaking afterwards, Dakin said: “We thank the Prime Minister for the support the government is giving British Steel at the moment. This support must continue until a buyer is found to take this business forward.
“It is a fundamentally sound business and the steel industry is strategically important to the defence and future prosperity of our country. I’m pleased that this was recognised by the Prime Minister.”
Progress on the sale
Last month the Official Receiver said it had made contact with more than 80 potential buyers for the firm.
British Steel has also placed raw material orders for the next three months, meaning it will likely carry on trading until September at least.
Several companies have emerged as possible buyers, including India’s JSW Steel, UK private equity group Endless and Chinese company Hesteel.
Read more: Greybull to bid for British Steel’s non-UK assets
Some had speculated Liberty Steel owner Sanjeev Gupta was also in the running, but he reportedly backed away from a bid after finding British Steel did not meet his recycling model.