French govt: Ascoval rescue deal not impacted by British Steel woes

A rescue deal for the Ascoval steel plant in northern France is not impacted by the current woes at British Steel since the Ascoval transaction involves another unit of British Steel not impacted by the liquidation process, said the French government. "The mother company behind the British Steel group has confirmed its ability to see through the Ascoval rescue and to bring over the necessary funds in the agreed timetable," said a statement by the French finance ministry.

British Steel was forced into liquidation on Wednesday, although Britain's second-largest steelmaker will continue to trade and supply its customers. The firm had earlier this month won approval from a French court to buy the Ascoval steel mill, in a deal under which the French state and local authorities are also to invest.