The deal is lined up to take place immediately on the planned sale of British Steel to Chinese industrial giant Jingye.
Barrett Steel is looking to get British Steel Metal Centre sites in Wolverhampton, Dartford, Newcastle and Scunthorpe as well as offices in Cheadle and Edinburgh.
“We are currently awaiting the sale of British Steel to be finalised. Discussions are continuing, but we would like to clarify that the sale between Jingye and Barrett’s will only be completed once the sale between British Steel and Jingye is confirmed,” the company said.
Founded in 1866, Barrett Steel is in its fifth generation of family ownership under managing director and chairman James Barrett. Turnover last year was £328m.