Historic steel company bought by UK Ministry of Defence

The cost of the acquisition is £2.56m (€3m) for the entire share capital of the company plus debt assumed.

The UK Ministry of Defence is buying steel company Sheffield Forgemasters for £2.56m (€3m). Picture: Anna Gowthorpe/PA

Unions in Britain have welcomed moves to nationalise a historic steel company, saying it ends years of instability.

The UK Ministry of Defence will buy Sheffield Forgemasters, saying it intends to invest up to £400m (€470m) into the firm for defence-critical plant, equipment and infrastructure over the next decade.