The iron and steel empire built in just seven years by Sanjeev Gupta is teetering dangerously. On Friday March 26, the British government refused the request for financial rescue launched by the Indo-British businessman, according to several British media. He had demanded 170 million pounds (200 million euros) to allow his company, GFG Alliance, to stay afloat. The group, in serious difficulty since the bankruptcy of Greensill, its main financier, employs 2,000 people in France and has strategic factories, including that of Hayange (Moselle), which manufactures the rails of the SNCF, or Aluminum Dunkirk, the largest foundry in Europe.
The British government’s refusal is dry and final, in a letter of only a few paragraphs. Explanation: GFG Alliance is too “Opaque”, according to a source quoted by the Bloomberg News Agency. In fact, the group is made up of a network of companies registered all over the world, without consolidated accounts. Difficult to see clearly. The group is content to say that it employs 35,000 people in 30 countries and has a turnover of 20 billion dollars (about 17 billion euros).
Expensive lifestyle
For the British government, there is no question of flying to the rescue of such an incomprehensible tangle, especially as Mr. Gupta makes headlines with an expensive lifestyle. In August 2020, the man notably paid for a property of 42 million pounds (49 million euros) in Belgrave Square, an exclusive islet in the heart of London. Surrounded by residences of ambassadors and oligarchs, the 1500 m2 19th century property, bought in the name of his wife, Nicola Gupta, features gilded moldings and painted ceilings in a very Rococo style. Development work is planned, the residence having received, on March 17, the green light from the local authorities to install a new terrace at the back of the building, change paintings and wallpapers and add a balustrade protecting the stairs.
The refusal of the British authorities to intervene is undoubtedly only temporary. Kwasi Kwarteng, the Minister of Industry, is very active on the file, discussing with the unions and the management of GFG Alliance. He has prepared an emergency response plan, ready to be activated. Some 5,000 UK jobs and essential factories are at stake, supplying the defense and aviation industry in particular.
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