Tata Steel's Scunthorpe based long-products arm will reportedly come under new ownership next week after a deal was completed with Greybull Capital. If the deal does go through at least 3,000 jobs will likely be saved.
UK based Greybull, which describes itself as a "family office that makes long term investments in private companies" bought the Yorkshire works for the nominal fee of £1 in April. At the time, one the firm's three bosses, Marc Meyohas, told The Scunthorpe Telegraph that they would put the plant "back on the map as one of the world's leading steelmaking centre".
After renaming the company British Steel, he said the new business could "flourish and be viable" and no further job losses were anticipated.
But before the company could step in and start the process of saving the plant, it needed to secure £400m ($585m) of financing so they could get it to work.
It now appears that the firm has managed to raise the full amount from the private sector, ruling out the need for a mooted £100m government loan.
A statement confirming the ownership change has been earmarked for 1 June, Sources told Sky News, which broke the story. However, this is subject to change.
Tata Steel announced it would sell its loss-making UK steel business, which includes Port Talbot and other steel-making sites in the country on 30 March.
It has since received takeover bids from about eight interested players such as Sanjeev Gupta's metals group Liberty House, the Excalibur management buyout led by Stuart Wilkie, Leeds-based private equity firm Endless, JSW Steel of India, and US group Nucor, as well as Greybull Capital.
However, on 26 May Tata's executive director of the Indian steel giant Koushik Chatterjee said the steel giant could consider retaining its UK business at a press conference organised to report the company's quarterly results.
He said his management team was "looking at continuing and sustaining the [UK] business". However, he added: "I don't think we have a case as yet. There is lots of focus only on a sale."