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A £300m package of support to get British Steel across the takeover line is on the cusp of being announced by Ministers.

And reports suggest the cash could help pave the way for a takeover of the company by a Turkish military pension fund.

British Steel, which employs about 700 people at Lackenby and Skinningrove and thousands more at Scunthorpe, entered insolvency in May after pleas for a state bailout from its private equity owner Greybull Capital were rejected.

Now national media outlets are reporting that Turkey’s military pension fund has offered nearly £70m to buy British Steel out of insolvency.

Ataer Holding is a wholly-owned subsidiary of Turkey’s state military retirement scheme Oyak - also the largest shareholder in Turkish steel group Erdemir.

And if Ministers agree the £300m support package, it would smooth the way for Ataer to be granted a period of exclusivity in which to complete the takeover . But it’s also understood a late expression of interest in British Steel has been submitted to the Government by a consortium of UK and West African investors.

(Image: Getty Images)

Whoever takes the company over, Redcar MP Anna Turley called the reported financial package “welcome news”.

She said: “The Government, the Official Receiver and the wider British Steel Support Group and the trade unions have been committed to leaving no stone unturned in the search for a buyer for British Steel.

“The priority has been finding a solution which guarantees a long term future for the business in its entirety and supports the wider British steel industry.

“I have been clear that government needed to step up and offer whatever financial and other support was required to pave the way for a successful deal and so this reported support package is welcome news. In 2015 when the SSI works in Redcar fell into liquidation, Government immediately stepped away, so I am relieved that lesson has been learned.

(Image: Getty Images Europe)

She added: “We now need to ensure, at this crucial stage, that the expected deal is taken over the line and that it will lead to a positive outcome for the business, its workforce, and the wider industry.

“The details will be critical but I expect any company getting government support to have a strong proposal which will invest in the assets, provide good terms and conditions for the workforce, support training, research and development and be committed to the local communities in which they will be based.

“All of the members of the British Steel Support Group will be working to ensure this happens.”

A spokesperson for the Official Receiver said: “The sales process is ongoing and the Official Receiver continues to assess the most viable offers received.”

A Department for Business, Energy and Industrial Strategy spokesperson said: “This Government will leave no stone unturned to get a good solution for British Steel at Scunthorpe, Skinningrove and on Teesside.

“The Official Receiver continues to run the business, whilst the sales process is ongoing.”

(Image: Ian Cooper / Teesside Live)

Tees Valley Mayor Ben Houchen urged caution - but remained optimistic: "The package, which is yet to be finalised, includes a mix of grants, indemnities and loans. According to reports, this is expected to pave the way for Ataer Holding to acquire the whole of British Steel. Through its subsidiaries, Ataer produces flat and long steel and iron products.

“The formal announcement is still likely in the next few days. A further six to eight weeks of due diligence is still needed before any deal is signed off and agreed.

“For the avoidance of doubt, the sales process is still ongoing and bids are still being assessed. However today’s reports show that it’s likely British Steel will ultimately be saved and Government is stepping up to the mark to save jobs."