Czech Billionaire Pavel Tykač Pursues Acquisition of Specialty Steels UK
A potential shakeup is brewing in the British steel industry as Czech billionaire Pavel Tykač, owner of Sev.en Global Investments and co-owner of the Czech media group Mafra, emerges as a key bidder for Specialty Steels UK (SSUK). The move comes as the UK steel sector grapples with challenges including Asian competition, high energy costs, and evolving trade dynamics. A decision from the British government regarding the preferred bidder is expected within weeks.
SSUK’s Liquidation and Tykač’s Expanding Steel Portfolio
SSUK, employing over a thousand workers across plants in Rotherham and Sheffield, entered liquidation last summer following the financial difficulties of its parent company, Liberty Steel, owned by Sanjeev Gupta [1]. The potential acquisition represents a significant expansion for Tykač, who entered the steel industry in 2024 with the purchase of British and Scandinavian steel mills from Spanish group Celsa [2].
A Troubled Industry Facing Systemic Challenges
The British steel industry is undergoing a major transformation. Crude steel production has fallen below 4 million tonnes annually, and the sector relies heavily on government support to remain viable [1]. The government has intervened to support key players like British Steel and is providing aid to Tata Steel for transitioning to electric arc furnace technology. Yet, systemic challenges persist.
Cost Disadvantages and Trade Barriers
British steelmakers face electricity costs 25-50% higher than their European counterparts, alongside US tariffs and the impending European Carbon Border Adjustment Mechanism (CBAM), launching in January 2026, which could complicate exports [1]. The European market is crucial for Tykač, with over 70% of his current steel production destined for the region, making trade negotiations vital for his group’s success [1].
Competition for SSUK and Tykač’s Previous Acquisitions
Besides Tykač’s 7 Steel UK, Arabian Gulf Steel Industries and Norwegian green steel group Blastr are also bidding for SSUK [3]. In April 2025, Sev.en Global Investments completed the acquisition of 100% stakes in Celsa Steel UK and Celsa Nordic, rebranding them as 7 Steel [2]. 7 Steel UK, based in Cardiff, is the UK’s largest scrap steel processor, with an annual capacity of 1.2 million tonnes, operating one of the most efficient electric arc furnaces in the country [4]. 7 Steel Nordic operates across Northern Europe, including Norway, Sweden, Finland, and Denmark.
Looking Ahead
The British government’s decision on the preferred bidder for SSUK is anticipated within weeks. The outcome will significantly impact the future of over a thousand jobs and the broader landscape of the UK steel industry. Tykač’s potential acquisition underscores his growing presence in the European steel market and his commitment to sustainable steel production.