One of the potential bidders for the Port Talbot steelworks, Liberty House, is expected to finalise a deal with a financial adviser tomorrow ahead of the official sales process for the plant starting on Monday.
City A.M. understands details of the adviser will be released once Liberty engages with India based Tata next week.
Liberty House was today forced to make assurances it can afford to buy Tata’s UK business, following reports it lacked the funds to acquire the plant.
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“Liberty House are very much in a position to move forward with the deal should certain conditions be met,” a spokesperson for the commodities trader said.
Business secretary Sajid Javid met with Liberty House founder and chief executive Sanjeev Gupta earlier this week to discuss his potential plans.
Gupta’s interest is dependent on the government giving Liberty House tax exemptions, including a deal over the UK’s carbon tax.
Prime Minister David Cameron has said he believed the government “can get a resolution for Port Talbot”.
Meanwhile, Javid yesterday travelled to the Port Talbot steelworks to meet with steel unions.
Javid told them Tata will be a “responsible seller”, according to leaders of the union Community.
Javid flew to India earlier this week to meet with Tata chairman Cyrus Mistry, which he described as “constructive and positive”.
Liberty House meanwhile has met with Welsh first minister Carwyn Jones, to “discuss ways in which government could support any future purchaser of Tata’s steel operations in Wales,” according to a government spokesperson.
Liberty House has said it would seek to convert the plant’s blast furnace to melt down scrap steep, saving on the cost of importing raw materials.
Other potential bidders being touted are turnaround specialist Greybull Capital and German steelmaker ThyssenKrupp, though both have declined to comment.
Greybull is finalising a £400m rescue package for Tata’s Scunthorpe works, with the deal widely expected to be announced imminently.