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EU: Lobby group worries over UK Steel deal

 |  November 14, 2019

Europe’s steel lobby group has asked the European Commission to investigate the takeover of British Steel by China’s Jingye over concerns it may breach State aid rules, reported the Financial Times. 

The Chinese industrial conglomerate this week agreed to a rescue deal for British Steel, the UK’s second largest steelmaker that collapsed in May. People close to the discussions have said they expected the takeover to involve some UK government support — such as guarantees to cover environmental risk or potential backing for new technologies. 

Eurofer, which represents Europe’s steelmakers, has raised concerns that any financial support provided by the British government may flout European State aid rules. The group also stated it was worried about the takeover of a European steelmaker by a Chinese company.

Full Content: Financial Times

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