Tata Steel UK has denied reports of a potential takeover bid from Chinese steelmaker Jingye Group.
It follows media speculation, based on banking sources, that Jingye has expressed tentative interest.
It comes as Tata Steel UK, which employs 8,000 in Wales and around 4,000 at its primary steelmaking operation at Port Talbot, is continuing talks with the UK Government over a financial lifeline of £500m.
The loss-making business, which is a subsidiary of Tata Steel Europe and ultimately Indian-owned, saw demand for its steel products plunge around 20% in the aftermath of the pandemic.
A Tata Steel spokesman said on reported interest from Jingye, said: "We would like to clarify that this is speculative and untrue."
Steel magnate Sanjeev Gupta, executive chairman of Liberty Steel Group, has also said he would consider an acquisition if the Port Talbot steelworks was brought to market.
Liberty Steel, part of the GFG Alliance owned by the Gupta family, was one of a number of bidders for Tata’s UK steel business back in 2016, before the sales process was abandoned.
Tata then pursued a joint venture of its European steel business with German conglomerate Thyssenkrupp, before that was dissolved last year.
Mr Gupta, who lives in Monmouthshire, said of the Tata’s UK business: “If we are offered, we are ready to look at it. We have a strong relationship with the Tata Group and are ready to explore any kind of partnership with them. The question is of Tata’s drive. I am always ready.”
On the ongoing funding discussions with the UK Government, under its so called Project Birch initiative aimed at backing large employers deemed of strategic national importance, a Tata spokesman said: "Tata Steel remains in ongoing and constructive talks with the UK Government on areas of potential support. As these discussions have not reached a conclusion, it would be premature to comment on any options that may or may not be under consideration."
