Liberty House said to bid for Australian steel producer Arrium’s assets

Liberty House said to bid for Australian steel producer Arrium’s assets

Liberty House Group is among bidders to have submitted an offer for the steel and iron ore assets of Australia’s Arrium Ltd., according to people with knowledge of the process.The London-based steelmaker and metals trader made a non-binding proposal, the people said, requesting anonymity as the details are private. Liberty House faces competition, including from private equity groups and entities with interest only in specific assets, two of the people said.Liberty House declined to comment in an e-mailed statement. A representative of KordaMentha also declined to comment on details of the process.Arrium, which appointed the administrator in April, has steel-making capacity of about 2.5 million metric tons a year. Operations include the Whyalla steelworks and port, the OneSteel steel manufacturing, distribution and recycling unit and an iron ore mining division, according to company filings. Binding offers are scheduled to be submitted in December and detailed due diligence materials are being prepared for bidders, KordaMentha said in an 5 October filing.‘Strong preference’The administrator has “a strong preference for offers that will allow for the sale of the business in one line as a going concern,” it said. A separate process for a sale or an initial public offering is underway for Arrium’s mining consumables business, which has sites from Chile to Indonesia.Liberty House was among bidders for Tata Steel’s UK operations and in March agreed to buy two Tata Steel mills in Scotland. The producer last month formally reopened the Dalzell works in Scotland and last year restarted operations at a rolling mill in Wales.Global steel producers, including Arrium, have been pressured by rising exports from China, maker of half the world’s steel, which have weighed on prices and eroded profits. Arrium’s underlying net loss in the six months to 31 December widened to A$…

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