French government threatens to block Jingye's acquisition of British Steel

The French government threatens to stop the Chinese deal to bail out British Steel. French Economy Minister Agnes Pannier-Runasher has warned that her government is ready to block the sale of British Steel to Chinese Jingye, as it fears for the fate of British Steel's French arm.

Pannier-Runasher said the deal could be blocked if the French had no guarantees. The fact is that France Rail, the lucrative French subsidiary of British Steel and the main supplier of rails for the French rail network, agreed to buy steel from the struggling Ascoval plant in northern France.

Part of Ascoval is Greybull, a controversial private equity group that owned British Steel when it took over in May.

Jingye last month negotiated an agreement with the UK government to bail out British Steel, but the plan has raised national security concerns amid claims it could give Chinese companies new leverage in the UK.