UK nationalizes British Steel, Jingye challenges legality of takeover

Jingye Steel says it will pursue legal action following the U.K. government’s move to nationalize British Steel last week. 

The Beijing-based metal producer acquired the company in 2020. In a news release, Jingye claimed the takeover breached contractual commitments, claiming the government stripped it of all shareholder rights when it assumed control of British Steel in 2025. The company also cited a report by the U.K.’s national audit office (NAO) suggesting the government takeover could cost £1.5 billion (about $2 billion) by 2028. 

The U.K. government has argued the intervention was necessary to safeguard jobs, protect critical industrial capacity and accelerate the shift to low‑carbon steelmaking.

Ministers have said British Steel faced significant financial distress and that Jingye had not committed enough toward meeting the country’s decarbonization targets. Government documents describe the takeover as a last‑resort measure to continue operations and prevent the collapse of the company.

Potential legal action

“The rule of law must not be violated, and the sanctity of contractual commitments must not be undermined,” the company said in its news release.

Jingye added it will take legal action to hold “relevant government officials and members of British Steel’s management legally accountable.” The company did not provide a timeline for arbitration or any further specifics. 

The U.K. said it plans to launch an independent investigation to determine whether compensation will be paid to Jingye.