Green steel to financial services entrepreneur Sanjeev Gupta is acquiring an Australian mining and steel group in a deal expected to safeguard more than 5,500 jobs.
Mr Gupta, who lives in Monmouthshire and has steel and energy interests in south Wales, has agreed to acquire Arrium out of administration.
The deal has been struck with administrators through Mr Gupta's international industrial, energy, natural resources and financial services group, GFG Alliance.
Mr Gupta, who through the family businesses Liberty House and Simece has steel operations in Newport and Tredegar, as well as owning Uskmouth Power Station, was one of the bidders for Tata Steel UK, which employs more than 4,000 at its primary steel plant in Port Talbot.
However, the sales process from Tata was abandoned following a pensions deal with steel workers, although it is continuing to explore a potential merger with German steelmaker ThyssenKrupp.
Mr Gupta also recently acquired bank Tungsten, which was been renamed Wyelands.
On the latest deal the chief executive of GFG Alliance said: "We have a vision to create a vertically integrated and sustainable industrial business that encompasses mining, metal recycling, primary metal production, engineering and distribution, and which also includes the use of renewable energy consistent with our green steel strategy.
"We aim to leverage the advantages of integration across the value chain, from raw materials and metal production to high-end engineered products, coupled with supply chain and value added financial solutions.
“The Arrium business fits perfectly with this strategy and we believe it has an exciting future leveraging our green steel vision which has been well proven in the UK.
"The acquisition will secure the jobs of over 5,500 Australian workers, a similar number to that which GFG Alliance has saved in the UK.
“Looking forward, we will continue to explore opportunities to further grow our presence in Australia in adjacent and complementary industries, including renewable energy, metals and mining."
The deal is subject to approval from a committee of creditors of Arrium and Australia's Foreign Investment Review Board.
Liberty's House steel operations in south Wales employ 170 in Newport and 46 at its tubes business in Tredegar. Uskmouth Power station has a workforce of 90.
