Tata Steel is to complete the sale of its Scunthorpe-based long-products arm next week after a £400m finance package was put in place with Greybull Capital over the weekend.
Greybull Capital bought the beleaguered steel division, which includes a works in Scunthorpe that employs 3,000 people and other sites in the UK and France, for a nominal £1 earlier this year.
Before Greybull could step in and begin their process of trying to save the plant, however, it needed to secure financing so the turnaround specialists could get to work. Today, it appears the firm has managed to get the full £400m from the private sector, meaning there will be no need for government support. The final details of the deal are expected to be announced on Wednesday.
The Scunthorpe site is separate from the rest of Tata's British operations and its large base at Port Talbot. The Indian-based firm are still reviewing proposals from the seven different companies that have placed bids on the operations. A board meeting took place in Mumbai last week, which business secretary Savid Javid attended.
Greybull has already announced it will rename the long-products division "British Steel", and this development means around 4,800 workers could officially switch employers as early as this week.
The fact that the deal will be entirely financed by the private sector will raise hope that a buyer can be found for the rest of Tata's operations soon, though wrangling over the £700m deficit in the pension scheme means government support or intervention is likely to be needed.