British Steel has been rescued by Chinese firm Jingye potentially saving up to 4,000 jobs, the UK's Insolvency Service said this afternoon.
The UK government announced that the liquidators for the steel business, which had been in talks with Turkish firm Ataer, has entered into a contract with Chinese industrial firm.
It said the deal would see Jingye purchase the steelworks at Scunthorpe in North Lincolnshire as well its other UK mills.
"Completion of the contract is conditional on a number of matters, including gaining the necessary regulatory approvals", The Official Receiver said.
"The parties are working together to conclude a sale as soon as reasonably practicable," it added.
The business will continue to trade as normal during the period between exchange and completion.
The deal for British Steel, estimated to be worth £70m, is of major political significance in Britain as it prepares to elect a new government on December 12.
The lack of opportunities in northern England, where British Steel is based, is an election issue, as the social gap between north and south widens.
British Steel was put into compulsory liquidation on May 22 after Greybull Capital, which bought the firm for £1 from Tata Steel three years ago, failed to secure funding to continue its operations.
Henri Murison, director of the Northern Powerhouse Partnership, set up to boost the economy in the north of England, said the rescue deal was "very welcome news".
He said it was time to embrace cooperation with China, which is extending its international reach through its Belt and Road global development strategy.
Chinese companies have also bought a steel plant in Serbia and its sole copper mine.
Chinese ownership is contentious, especially in the steel industry.
The European Union, which does not include Serbia, has sought to protect its own steel industry from competition from cheap Chinese imports.
Britain has said it will leave the economic and political bloc, but has yet to agree a departure deal.
An advantage of Jingye, a multi-industry business specialised in iron and steel, is that it knows the industry and has the ability to invest, industry sources say.
With 23,500 employees and registered capital of 39 billion yuan ($5.58 billion), Jingye Group ranks 217th among the top 500 enterprises in China.
