Wed, 03 Sep 2025

Wed, 03 Sep 2025 Ministers favour merging all UK steel companies into one

The government believes the struggling sector's six companies should be merged together, sources tell the BBC.
The UK government supports merging the country's six steelmakers into one entity, but wants to avoid nationalizing any companies. Instead, ministers believe finding a joint buyer could be the best solution for making the sector financially sustainable. The Department for Business and Trade (DBT) is looking for commercial buyers to take over four of the six UK steel companies that are currently being financially supported by the government. Two of these companies have already been placed in the hands of liquidators, with the government covering their ongoing costs while a buyer is sought. Ministers have told the sector that they believe merging would make the industry more viable in the long-term, but any future plan would require the backing of the current owners. The UK's steel industry has faced significant financial difficulties due to high energy prices and increased tariffs, and ministers are already searching for buyers for two steel companies. Another company was nationalized by the government in 2021 after facing financial difficulties. Ministers have agreed to cover the ongoing wages and costs of a third plant while a buyer is sought. The government has said that it prefers commercial decisions made by individual companies rather than government intervention, but believes that working together could make the sector more financially sustainable. Labour has taken action to support the steel industry, including trade defense measures and lowering energy costs.
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