A Korean consortium led by Newlake Alliance Management and JB Asset Management is the preferred bidder to acquire troubled steel and iron ore business Arrium, but the British consortium has reportedly vowed to stay in the fight.
Arrium’s Whyalla steelworks went into voluntary administration last year, citing debts of over $4 billion.
KordaMentha, the appointed administrator, said recently it is dealing directly with the Korean consortium, which has been selected as the preferred bidder.
But a spokesperson from a British bidder, GFC Alliance, reportedly told the ABC this week the firm was still “passionate” about acquiring the failed steel business.
The spokesperson reportedly said the company was pursuing discussions with KordaMentha at this time.
Meanwhile, well known steel industry insider Ray Horsburgh has questioned the proposal from the Korean bidder, saying the Finex steelmaking technology from the Asian nation has not been adopted elsewhere.
“If it’s so good, then why hasn’t it been used in other countries?” Horsburgh reportedly asked the AFR last week. “It needs proper analysis. The real issue here is – are people being bogged down by the sexiness of new technology?”