A Korean consortium has emerged as the likely new owner of troubled steelmaker Arrium after being chosen as the preferred bidder by the Whyalla-based company's administrators.
The consortium, headed by private equity firm Newlake Alliance Management and backed by South Korean steel giant POSCO, has beaten a rival group led by UK-based Liberty House.
Administrator KordaMentha will now work with the Newlake consortium to finalise the sale, which will require discussions with the federal and South Australian governments and approval by Arrium creditors and the Foreign Investment Review Board.
"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," KordaMentha partner Mark Mentha said in a statement.
Arrium's current assets include the flagship Whyalla steelworks and port, an east coast steel business, and an iron ore mine in South Australia.
The Korean consortium has proposed a major upgrade of the steelworks, and the South Australian government has previously pledged $50 million to the new owner to assist with an upgrade.
Arrium, formerly known as OneSteel, was placed in voluntary administration in April 2016, hit hard by a plunge in iron ore and steel prices over the previous two years that left it struggling with a high debt load.
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