Tata Steel has announced it has sold its Long Products Europe Business to an investment firm.
Greybull Capital will take on the whole of the business, including the Scunthorpe plant.
Around 4,400 jobs in the UK could be safe under the deal, Tata claims.
The agreement would be completed once a number of outstanding conditions have been resolved, including transfer of contracts, certain government approvals and the satisfactory completion of financing arrangements.
The announcement follows Tata’s decision of selling of its businesses in the UK.
According to a former Tory Minister, the steel sector is facing a crisis partly due to high energy costs in the country.
Hans Fischer, Chief Executive of Tata Steel’s European operations said: “Under these current challenging market conditions in Europe with the soaring levels of imports from China, we are happy that Tata Steel UK and Greybull Capital have entered the final stage of completion of the sale of shareholding in Longs Steel UK.”