AusBN - A Korean consortium is likely to become the new owner of troubled steelmaker Arrium (ASX:ARI), after overcoming a rival buyer in being named the preferred bidder for the company.
The consortium, which is comprised of private equity firm Newlake Alliance Management and South Korean steel giant POSCO was chosen by administrator KordaMentha, ahead of UK-based Liberty House.
KordaMentha will now work with the Newlake consortium to finalise the sale, although hurdles still remain.
Discussions with the federal and South Australian governments will need to take place, while Arrium’s creditors and the Foreign Investment Review Board will have to approve the deal before it can be completed.
'After a 14 month administration and a nine-month sale process, we are now an important step closer to providing certainty to employees, creditors, suppliers, customers and the Whyalla community,' said KordaMentha partner Mark Mentha.
Formerly known as OneSteel, Arrium was placed in voluntary administration in April 2016, having been hit hard by the plummeting of iron ore and steel prices over the last two years.