Clayton Utz acts as collapsed steel and mining group goes to new British owners

by Sol Dolor31 Jul 2017
Clayton Utz is advising the buyers of Arrium, a collapsed Australian steel and mining group of companies.

British firms Liberty House, SIMEC, GFG Estates, and Wyelands won the bidding for the company against a rival Korean consortium. They have entered into a binding agreement to buy Arrium out of administration.

Clayton Utz partners Paul James, Brendan Groves, and Nick Poole lead the law firm’s team. They are being assisted by senior associates Warrick Louey and Anthony Burke, and lawyer Craig McDermaid.

The deal, which has already been approved by creditors, is expected to close by the end of August pending Foreign Investment Review Board approval. Administrator Korda Mentha said the transaction secures the jobs of more than 5,500 workers.

GFG Alliance, which is founded and owned by the billionaire Gupta family of Britain, will buy all of the OneSteel businesses, Whyalla Port and Rail, and the Whyalla Steelworks company – one of South Australia’s largest employers.

Earlier this month, Sanjeev Gupta told The Australian Financial Review that his group of companies expects to invest about $1bn into Arrium. The investment will go into the Whyalla steel plant and associated infrastructure including a power plant.

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