Turkish military pension fund in takeover talks to buy British Steel

The steelmaker went bankrupt in May

A general view shows the British Steel works in Scunthorpe, Britain. Reuters

The UK is in talks to sell British Steel to the Turkish military's pension fund in the coming weeks, after the steelmaker went bankrupt.

Ataer Holding, a unit of Oyak which looks after the pension pots of Turkey's military personnel, said it was conducting an exclusive review of British Steel.

"During the exclusivity period, close negotiations to be held with customers, suppliers, employees and trade unions is significant for the future success of British Steel," Ataer said in a statement.

A search for a buyer of the steelmaker has been underway since British Steel collapsed in May.

British Steel employs 5,000 workers mostly at its Scunthorpe plant, one of the UK’s two remaining blast furnace steelworks.

An estimated 20,000 jobs in its supply chain are dependent upon the company elsewhere.

The UK government agency responsible for the auction process said the steelmaker would continue to trade as normal during the negotiations.

"I will be looking to conclude this process in the coming weeks, during which time British Steel continues to trade and supply its customers as normal," the Official Receiver said in a statement.