Sev.en proposes merging British Steel and SSUK into a single producer

The Czech investment group Sev.en Global Investments has proposed that the British government find a single buyer for British Steel and Speciality Steel UK (SSUK), which could lead to the creation of the country’s largest steel producer. This was reportedhttps://www.theguardian.com/business/2026/may/01/seven-energy-group-hints-bid-british-steel-speciality-steel-uk

by The Guardian.

The company’s CEO, Alan Svoboda, stated that merging the two assets appears to be a more attractive solution, as it would require lower budgetary expenditures and ensure a more stable development model. According to him, the government should focus on an investor with experience in the steel industry and sufficient financial resources.

Sev.en already plans to invest around £100 million in its UK assets, including the electric arc furnace plant in Cardiff, acquired in 2025. At the same time, the company says it is ready to invest “hundreds of millions of pounds” in the further development of the industry under the 7 Steel brand.

British Steel came under government control in April 2025 due to the risk of closure by its Chinese owner, Jingye. Soon after, a similar fate befell SSUK, which was declared insolvent following Liberty Steel’s financial difficulties.

Svoboda also highlighted the potential for developing higher-margin segments, particularly the processing of steel into higher-value-added products, which could reduce dependence on commodity markets. At the same time, he believes that large-scale staff reductions are unnecessary, as employees can be redeployed to these areas.

Interest in the British market has intensified following the introduction of 50% tariffs on steel imports exceeding quotas, which creates additional advantages for local producers. At the same time, the industry has not yet emerged from the global cyclical downturn, but the investor views it positively in the long term.

If the deal is successful, Sev.en could overtake Tata Steel and become the largest steel producer in the UK, significantly altering the industry’s structure.

It is worth noting that the British government hopes to find a private buyer for British Steel and is seeking to involve bankers in the sale process. There was also a separate view regarding the advisability of merging the steel producer with other companies in the sector, specifically Sheffield Forgemasters (a heavy machinery manufacturer), which is also under government control.