The dismantling of Sanjeev Gupta’s British business empire is accelerating after advisers were hired to find a buyer for a steel production business which supplies oil giants including BP and Shell. Sky News has learnt that Liberty Steel’s Hartlepool-based steel pipes unit, which employs about 170 people, is hunting a buyer within weeks.
Industry sources said that BTG Advisory, also known as Begbies Traynor, had been hired to handle the sale process. Prospective buyers have been sounded out in recent days.
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The Liberty Pipes business, which also counts Equinor among its customers, has been loss-making in recent years. It is part of Mr Gupta’s Liberty Steel Group, which in turn is owned by the embattled businessman’s GFG Alliance.
Last summer, the bulk of his British operations, known as Speciality Steel UK (SSUK), were placed into liquidation after a judge ruled them to be "hopelessly insolvent". A sale process being overseen by the Official Receiver is well underway and has drawn interest from more than a handful of parties. These include Arabian Gulf Steel Industries, Sky News reported this month, while The Sunday Times also named EIG Global Trust, a cryptocurrency fund, and 7 Steel, as rival bidders.
Mr Gupta has himself been exploring a possible offer, with backing from the American fund management giant BlackRock. The Insolvency Service recently said: "We can confirm that the Official Receiver continues to progress bids for the sale of Speciality Steel UK. "The sales process is ongoing, with the aim to complete a sale at the earliest opportunity." The Liberty Pipes division is recently understood to have delivered 51,000 tonnes of steel pipe to a huge carbon cluster project on Teesside which has also faced criticism for placing a separate order for Chinese-made, rather than British, steel. Sir Keir Starmer’s visit to China this week was expected to include some reference to the future of British Steel, which is owned by China’s Jingye Group but under the control of the UK government. Bids for the Liberty Pipes business are understood to be being sought by 10 February. It was unclear on Friday whether the pipes unit would have a viable future unless a buyer is found.
A Liberty Steel spokesperson said: "The directors of Liberty Pipes Hartlepool have launched an accelerated sales process for the company and its assets to identify the right industrial or strategic investor to support continued production and deliver a long-term sustainable business. "A targeted sale transaction, if concluded, would protect skilled employment, maximise asset value, and deliver the most favourable outcome for the company’s stakeholders. "The process is expected to progress on an accelerated timeline, with a target to complete by 20 February." "The company is working on an exciting sales pipeline for the coming years encompassing carbon capture, hydrogen infrastructure, LNG and oil and gas projects across the UK, EU, Americas, the Middle East and Asia."