Abu Dhabi-based Arabian Gulf Steel Industries (AGSI) is one of several firms who have submitted proposals to acquire Britain’s third largest steel producer Speciality Steels UK (SSUK), the collapsed division of Sanjeev Gupta’s Liberty Steel empire, Sky News reports, citing sources it says are in the know. SSUK, which operates sites in South Yorkshire, was declared insolvent in August 2025 and is currently under the control of a UK official receiver, who is reportedly evaluating bids.

One source suggested AGSI is looking for backing from the UK’s National Wealth Fund to finance the takeover and restart production in Yorkshire.

Why it matters: This signals continued appetite from Gulf industrial players for outbound M&A, particularly where they can leverage “green” credentials to rehabilitate aging Western assets.

About the suitor: Based in Abu Dhabi, AGSI operates a scrap-based steel model using induction furnaces, which carry a significantly lower carbon footprint than traditional blast furnaces. It claims to be the UAE’s biggest private steelmaking company.

Our take

Acquiring SSUK would give the UAE player a foothold in the UK market at a distressed valuation, potentially allowing AGSI to export its low-carbon production model to a sector desperate for decarbonization.

On the flipside, it will be stepping into a chaotic UK steel landscape defined by high energy costs, the looming threat of Trump-era tariffs, and a government currently weighing whether to merge remaining industry players to prevent total collapse.

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