Dedicated China group said on Monday that it had reached a temporary agreement to acquire British Steel and promised to invest 1.2 billion pounds ($1.5 billion) over the next 10 years to save 5000 jobs.

Although the deal has yet to be finalised, Andrea leadsom, the UK business secretary, said she was optimistic.

The acquisition of British Steel will allow dedicated group access to Europe's huge infrastructure market. Li Chengpo, chairman of the group, said its goal was to create a world-class enterprise group.

"We are confident that this portfolio will create a strong, profitable and sustainable enterprise that will ensure the long-term future of thousands of jobs while producing innovative high-quality steel products that the world needs," he said in a statement

The price of the deal was not disclosed, with earlier British media reports saying it could be around £ 70m, while sources close to the talks said it could be close to £ 50m.

For most of this year, uncertainty about the future of British steel has plagued its employees. In May, the company was forced to liquidate after Greybull capital acquired the company from India's TISC. Ns in 2016 for £ 1, but failed to secure funds to continue operations.

If the company goes bankrupt, it will affect 5000 direct jobs, as well as 20000 jobs in its supply chain. (From LGMI)