
How Donald Trump’s tariffs are wreaking chaos in the British metal industry
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5 months agoon
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adminAs the clock ticked down towards 12.01am Eastern Standard Time on 12 March, Liam Bates kept refreshing his browser.
Over the preceding weeks, Marcegaglia, the stainless steel company whose long products division he headed up, had rushed to melt and ship as much metal as it could from its furnaces in Sheffield across to the east coast of America, ahead of the imposition of tariffs.
Stainless steel
UK and US industrially interlocked
Of all the varieties of steel, stainless steel – an alloy of iron and chrome, along with other elements like nickel, molybdenum and carbon – is among the most important. Unlike most other iron alloys, which can rust when they encounter oxygen, stainless steel has a passive film that protects it from corrosion and can even self-heal. That makes it essential not just for use in sinks and cutlery (where most people will encounter it on a daily basis) but, arguably even more essential, in surgical instruments, heavy machinery and the pipes and ducts out of sight but essential to keeping civilisation working.
The trick of how to make stainless steel in large quantities was discovered here in Sheffield by Harry Brearley, and while the laboratories he worked for shut down long ago, the furnace at Marcegaglia, in an industrial park just outside the city, can trace a continuous thread back to him. This furnace used to be owned by British Steel, the nationalised corporation responsible for most of Britain’s steel manufacture until the days of privatisation.

Marcegaglia steel furnace in Sheffield
Ever since the invention of stainless steel, Britain has melted, cast and exported vast quantities of the stuff to America. For all that the US has a sizeable stainless steel sector, the two countries’ stainless sectors have nonetheless been industrially interlocked since the days of Henry Ford. You can see it in the way Marcegaglia functions.
It melts down scrap in its electric arc furnace in Sheffield – an enormous cauldron whose electrodes create a storm of lightning that consumes the same power as a sizeable northern city – and adds the relevant alloy ingredients to form a long, heavy metallic bar, a billet as it’s known. That billet is then shipped across the Atlantic to the company’s other site, where the billets are processed into bars that are then sold into the North American market. It is a single economic organism, split only by an ocean.
But today that ocean and that cross-country split have become an enormous problem. The last time Donald Trump imposed tariffs on steel imports, back in 2018, so-called “intermediate” products like the billet made by Marcegaglia and then processed in America were excluded from the duties. This time around, the initial tariff rules had no such exemptions. The upshot was that any steel arriving in American ports after 12.01am Eastern Standard Time on 12 March – including Marcegaglia’s half-finished stainless billets – would incur hefty 25% tariffs.
A race against time
All of which was why Liam Bates had raced to get as much steel as possible into the US before that deadline. But as he refreshed his browser in the run-up to that deadline, he noticed two straggling shipments, still stuck on the Atlantic. The two ships, the Eva Marie and the Atlantic Star, were, between them, carrying about $12m of steel and they had been due to dock in the US on 10 or 11 March. If so, they would have avoided having to pay those 25% tariffs. But now storms and squalls were spreading across the North Atlantic. Would they stray into the ships’ path, disrupting shipping?
If the cargo arrived late, it would obliterate any margin the company hoped to make on its steel. And since those bars were destined for Marcegaglia’s own plant, the company would have to pay all those costs itself (tariffs are technically paid by the importer). Somehow, Bates had found himself helplessly witnessing an unexpected collision of politics and weather – with profound commercial consequences.
Of all the metal items Britain exports to the US, stainless steel is by far and away the biggest category. And the vast majority of that steel comes from the melt shop at Marcegaglia. But the quandary facing Liam Bates, and those companies he sells to in the US, helps illustrate the difficulties of economic policy-by-tariff.
Americans will see cost of most things go up
The prevailing theory behind the White House measures is that by raising the price of all imported metals, it will encourage domestic producers to build new production. It will help the US to reindustrialise – or so says Donald Trump. And in the long run, that might well prove right. Already, metals producers are raising money, promising to restart old, mothballed smelters. After all, if your main overseas competitors have seen their prices rise by 25%, that’s quite a competitive opportunity.
The problem is: building industrial production takes time. Marcegaglia itself is planning to replace its old furnace with a newer model, but the planning process has already taken years; the construction itself will be measured in months if not years too. In other words, even if everything goes to plan, America is very unlikely to replace imported steel with domestic production within the period of Donald Trump’s term as president.
In the meantime, American consumers will see the cost of pretty much everything going up. After all, steel – ignored or dismissed as it sometimes is – is the single most important metallic substance in the world. If something isn’t made of steel it’s made in machines made of steel. And lifting some of those steel prices by 25% will travel like an economic tidal wave through US supply chains.
UK flooded with cheap imported steel
The tidal wave is already washing back elsewhere too. With so much steel now unable to get into the US at a decent price, exporters are redeploying shipments elsewhere. All of a sudden countries like the UK are seeing a flood of cheap imported steel – good news in the short run for consumers, but disastrous for what is left of Britain’s domestic industry.

As the deadline approached and Bates nervously refreshed his live vessel tracking map, disaster struck. The squalls across the Atlantic mounted and the Eva Marie and Atlantic Star slowed nearly to a halt. By the time midnight struck and the tariffs came into place, the two vessels were still many miles off the US coast. They had lost the race. The upshot was Marcegaglia would have to pay around $4m in tariffs – about £3m.
That a company was struck with a somewhat arbitrary fee simply to pass goods from one of its factories to another might be among the most egregious examples of the collateral economic damage wrought by trade barriers, but it is likely to be the first of many perverse episodes, with consequences all around the world. For steel is not the only metal to be hit with tariffs. If anything, the drama is even greater for another metal: aluminium.
Aluminium
The world’s biggest factory – hidden in Scotland
Here’s a riddle for you: what is the biggest factory in the world?
You’re probably thinking of vast, cavernous car production lines in Michigan, of shipyards in Korea or steelworks in China. But there’s a strong case to be made that the world’s biggest factory is instead to be found deep in the Highlands of Scotland.
Not that it looks anything like a factory. To the untrained eye, it looks, instead, like heather, forests and bubbling burns of water trickling into lochs. But the 114,000 acres of estates in Lochaber and Badenoch – the third biggest rural estate in Scotland – play a crucial role in helping produce one of the most important substances in the world.

Part of the side of a mountain running into a hydroelectric power station for Fort William aluminium plant
The Fort William aluminium plant sits under the shadow of Ben Nevis, the tallest peak in the United Kingdom. Once upon a time, it was just one of a constellation of smelters dotted around Scotland, that made this country, all told, one of the world’s biggest aluminium producers.
For all that it is very prevalent in the earth’s crust, aluminium used to be one of the world’s most precious metals – so much so that no one had even laid eyes on it until the 19th century. When he wanted to impress his guests, Napoleon III served them dinner not on gold plates but on aluminium.
An extraordinary metal
Why? Because aluminium is very difficult – even harder than iron – to convert from the ores you find in the ground into its metallic form. Burn iron ore hot enough, in the right kind of furnace alongside the right kind of charcoal or coal, and you eventually smelt out a form of metal. But aluminium needs a different kind of force to be persuaded to loosen its bonds and form into a pure metal – the force of electricity.
So only when the Hall-Heroult process, which allows you to smelt aluminium via electrolysis of alumina (a processed version of the bauxite you get out of the ground), was invented in 1886 did aluminium become a widely available metal. Few people talk these days about the Hall-Heroult process, but it was a breakthrough of earth-shattering proportions. Aluminium is an extraordinary metal – strong but light. And those qualities make it essential in aeronautic deployments. No aluminium, no planes.

Fort William aluminium plant
It is no coincidence that the Wright Brothers’ plane at Kitty Hawk had an engine made out of aluminium. Steel would have weighed the glider down too much. And it’s no coincidence that powered flight happened shortly after aluminium became widely available. Without the Hall-Heroult process, the world would have been a very different place.
While the process wasn’t dreamt up in the UK, British industrialists rapidly embraced it, building smelters all over the country. But the catch with aluminium is that you can’t smelt it without a big and (this is important) very reliable supply of power. Turn off the power to those enormous carbon electrodes inside an aluminium smelter and in a matter of hours the metal at its base will solidify, effectively destroying it. More than nearly any other industrial process, this is not something you can just switch off willy-nilly, which helps explain why smelters aren’t typically dependent on variable power sources like wind and solar.
It also explains why, throughout history, these plants have been seen as some of the most important industrial locations throughout the world. The Fort William plant provided most of the aluminium used in Spitfires during WWII. It was repeatedly targeted by the Luftwaffe – indeed there is an old German bomb kept as a memento just near the turbines that power the cells here.

Fort William aluminium dam
Some of the world’s earliest smelters were powered by hydroelectricity – most notably the ones which drew their power from the Niagara Falls plants near Buffalo, New York. But the Fort William plant was subtly but importantly different. Those other hydro plants would typically piggyback off a big dam generating power from a big river – such as the ones you find in the US or Canada, or the fjords of Norway. But none of Britain’s rivers is quite powerful enough or with a reliable enough flow to provide that kind of uninterrupted power.
Radical design
So the designers of the Fort William plant did something radical. They bought up vast stretches of the countryside around Ben Nevis (including Ben Nevis itself). And within that estate, they built a series of dams to collect the rainwater trickling down from local watersheds. Those dams weren’t there to generate power for homes – they were there to collect the water and channel it through a series of tunnels, running 16 miles through the hills and through the flanks of Ben Nevis. Then the water, collected from those 114,000 acres, feeds five pipes running down the side of the mountain which run into an enormous hydroelectric power station.

There are many aluminium smelters around the world and many hydroelectric dams. But none are quite like this one. The point being that without the estate, without all those trickling streams and heather-covered watersheds, the plant here simply wouldn’t function. It is all part of a single ecosystem.
These days the plant is connected to the national grid, meaning it also serves another function: balancing. This comes back to one of the dysfunctions of the grid: it doesn’t have enough high-voltage lines connecting Scotland, with all its wind farms, and the south. So on windy days, when there’s too much power in Scotland, instead of curtailing those farms and wasting the electricity, the plant can suck in extra power from the Scottish section of the grid and leave its water where it is as a sort of battery.
Competition from China
The problem the plant has faced is that these days aluminium is a commodity metal. And it’s becoming harder and harder to compete with the cheap metal being exported from China. China dominates the global supply of the metal, in large part because its suppliers benefit from cheap energy and generous government subsidies – neither of which are available in the UK. As the years have gone by, the workers at Fort William have watched as, one by one, every other plant in Britain was shuttered. Rumours still abound that they may eventually be next.

Fort William aluminium plant
And, much as for Marcegaglia down in Sheffield, the tariffs on aluminium will only make life tougher for Alvance, the unit of Liberty House – part of Indian-born Sanjeev Gupta’s business empire – that now owns the Fort William plant. Arguably, the impact could be even greater. The last time Donald Trump imposed tariffs on aluminium back in 2018, the rate he chose was 10%. The difference with the steel tariff level (which was 25% then and now) reflected the fact that the US imported far more aluminium than steel. Imposing severe extra costs on it would, the White House worried, cripple the American aerospace and car businesses dependent on the metal. No such concern this time around. The tariff is 25%.
Quite how that will affect the plant here in the Scottish Highlands remains to be seen. After all, Alvance itself doesn’t sell anything directly to the US, sending its large slabs of metal to other firms in England which process and roll them into sheets and specialised components, some of which end up in the US. Perhaps, as the defence industry ratchets up in the coming years, more of that aluminium will be used by domestic industry. But what’s to stop UK manufacturers doing what they’ve been doing for years, and simply opting for the cheapest metal available, which usually comes from China? Either way, life for the last remaining aluminium plant in the UK is about to get harder, not easier.
But while the main upshot of the trade war building across the Atlantic and the Pacific will be to make both sides worse off – that, at least, is the prediction from the Organisation for Economic Co-operation and Development – that doesn’t mean there won’t be some beneficiaries in this country. For a small but important example, let’s travel from the far north of Britain to its far south.
Tungsten
UK has one of its biggest resources in world
Drive across Dartmoor, the windswept national park in the heart of Devon, and every so often you come across the remains of an old tin mine. At Fox Tor you find the remains of alluvial mining; there is Golden Dagger Mine, which ran all the way to the 1930s, as well as the hollow stone chimney of the pumping house at Wheal Betsy.

Hemerdon tungsten mine
For much of the ancient era, tin – which when mixed with copper creates the alloy bronze – was what we would today call a “critical mineral”, essential for the production of the strong tools and weapons of the Bronze Age. And for centuries, the majority of Europe’s tin came from Cornwall and Devon.
That, of course, is long in the past. But just on the outskirts of Dartmoor is a site that could – just could – make this an important site for critical minerals once again. For here, beneath the soil of southwest England, is one of the world’s biggest resources of tungsten.
Tungsten among few substances on everyone’s list
Tungsten is among the 21st century’s most important critical minerals. Nearly every country has a list of these materials – the kinds of things they need to make their most important products – and the members of those lists vary by region. But tungsten is one of the few substances that feature in everyone’s list. The hardest metal in existence, with the highest melting point, it is essential in the production of hard steel tools, weapons, armour and as the electrodes inside semiconductor circuits. If you are making electronics you need tungsten. If you are going to war you need tungsten.

Perhaps it’s no coincidence that the main heyday for this mine, which contains plenty of tin as well as tungsten, was in the First and Second World Wars. Much as the Fort William plant provided aluminium for British Spitfires, Hemerdon provided the tungsten and tin needed for the weapons Britain used to fight the Nazis. But ever since then, its history has been chequered, to say the least.
It went into hibernation for decades, a sleep broken for only a single day during the Korean War. Then, a few years ago, investors tried to get it up and running again. They built a vast processing plant and began to mine the metal. But by 2019 the operation had run out of money and imploded. All that was left was an even bigger hole in the ground, a large tailings dam for waste and a hangar filled with processing equipment.
In part, the reason Hemerdon went belly-up that time was because the company made the mistake miners often make: they misjudged the type of ore they were expecting to grind through, meaning their processing plant was far less efficient than it could have been. But an even bigger challenge came back to something that will sound familiar: they were trying to compete with China.
China dominates world tungsten production – even more so than for aluminium and steel. It essentially controls the global market and, just as importantly, the tungsten price. Anyone trying to sell tungsten is contending with Chinese prices which can yo-yo for reasons no one can entirely explain. That makes it fiendishly difficult to compete.
But in recent years, new investors have begun to put fresh funds into the Hemerdon mine, hoping history will not repeat itself and this time around it can exploit that enormous ore resource. And there are at least a couple of reasons to believe (famous last words in finance) that “this time might be different”.
The first is that, in retaliation against Donald Trump’s latest metal tariffs, China has begun to put export limits on tungsten. How this will work in practice remains unclear (remember that like most markets China controls, the way tungsten sales function is almost completely opaque) but if it encourages domestic buyers to look for local suppliers, that could help the mine to find buyers. After all, in theory, it could produce a few thousand tonnes of the metal each year, which would instantly leapfrog Britain to become the world’s second or third-biggest producer (albeit a long way down from China).
Supplies matter more than ever
The second big shift comes back to defence. With the world remilitarising, all of a sudden tungsten supplies matter more than ever. And since defence suppliers pay outsized attention to where metals come from, again, that might allow a British tungsten mine to succeed where predecessors have failed.
Add to this the fact that the mine itself is nearly ready to be exploited and that the new owners reckon they’ve ironed out the problems that beset their predecessors, and it’s a compelling case. They think they could be getting metal out of the ground as soon as next year.
But those overarching challenges haven’t gone away. And nor has another, bigger problem facing the entire industry, not just in the UK but – perhaps even more so – in the US. How can you plan in a world where you just don’t know what’s coming out of the White House in the next few days, let alone the next few years?
Consider: imagine you’re a stainless steel producer or an aluminium smelter in the US. Those 25% tariffs mean all of a sudden in theory you have a competitive advantage over anyone shipping metal into the country. All of a sudden, there’s a strong case to build a smelter or a stainless steel melting shop. So you get to work looking for backers.
Uncertainty creates challenges
But building a plant like this takes time. You need to find a site, connect it to high-voltage power, and build the facilities and all the necessary infrastructure. Best case scenario: it might take a couple of years, but even that is ambitious. And as you contemplate this and map out your plans, those backers will ask you the same nagging question you’ve been asking yourself: sure, the economics of an aluminium smelter might add up today; but what if the president changes his mind tomorrow, or next year? What if those tariffs are pulled by the next president? Then, all of a sudden, the sums very much don’t add up.
All of which is to say, uncertainty around tariffs is a challenge not just for those companies hoping to ship products to America, but for American firms hoping to benefit from this trade war. And bear in mind metals are only the first chapter of what could be a long saga, which ends up engulfing all corners of American trade. These are unpredictable times, however you look at it.
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Business
‘It shouldn’t be like this’: Full-time workers relying on food handouts amid cost of living crisis
Published
6 hours agoon
August 11, 2025By
admin
At a community food table in Staffordshire, produce is being handed out for free.
“I need to come here otherwise we’d be living on bread,” Rebecca Flynn told Sky News.
The 51-year-old said: “I’m earning pretty decent money, but it’s not enough.”

Rebecca Flynn
It gives you an insight into just how deeply the cost of living crisis is biting – because Rebecca is working full-time as an office manager for a day service for people with learning difficulties.
On top of that, she has a second job going door-to-door on evenings and weekends, selling cosmetics and homeware.
“There’s nothing more I can do. Unless I win the lottery or get another job. It should be noticed that people are in this state,” she says.
“Local councils, local governments, they need to see what’s going on, come to ground level. It’s 2025. It shouldn’t be like this.”
But it’s not just Rebecca working all hours and needing food handouts to survive.

Alex Chapman is the co-founder of the Norton Canes Community Food Table, and says a third of the people who use it are working full-time.
“It’s mad that you’re working a good job and you think you’d be able to afford everything and go on holiday and everything like that, but in reality they’re struggling to put food on the table,” he says.
“We’re seeing a massive increase in the people that are using the food table. We see them in their work outfits. Professionals, nurses – you don’t expect them to be struggling because they’re working full-time. People who aren’t working – you expect them to be struggling. But it’s across the board.”

Cannock Chase
The food table is in Cannock Chase.
Sky News analysis of local authorities gives an insight into why people are feeling dissatisfied their salaries are no longer delivering the comfortable lifestyles they thought hard work and a good job would deliver.
Over the past few years, Cannock Chase has gone from being a middle-class part of Britain to one of the lowest-earning areas in the UK.

In 2021, UK average annual salaries were just short of £26,000 – Cannock Chase was almost identical, according to Sky News analysis of Annual Survey of Hours and Earnings data from the Office for National Statistics (ONS).
Since then, the UK average wage has increased by 21.6% – or more than £5,000 a year – keeping pace with high inflation.
But in Cannock Chase, salaries have only risen by 8.4% – meaning on average people are now £300 worse off per month than the average worker across the UK.
SEE HOW YOUR AREA HAS COPED WITH THE COST OF LIVING CRISIS
It won’t have escaped your attention that prices have gone up, by a lot – by a fifth since 2021, the highest sustained rate since the 1990s – with some of the biggest rises among essentials like energy and food.
But, across the whole country, wages have actually done a pretty good job at keeping up with inflation. The problem is that the wage increase is an average, made up of highs and lows, while the price rises affect us more uniformly.
That means if you haven’t had a pay-rise, you will quite quickly find that you can’t afford as many of the things you used to.
People in places like Brentwood in Essex, the Cotswolds in rural Gloucestershire, and Melton in Leicestershire, have seen their wages increase at twice the rate of prices in the last few years, on average.
But on the other end of the scale are places like Cannock Chase, where inflation has been more than double the rate of wage increases.
It used to be a place where average earnings pretty much exactly reflected the UK midpoint. Now, people in Cannock are about £300 worse-off every month than the average person.
See how your area compares with our look-up.
Louise Schwartz, who has two children, describes herself as middle-class. After 20 years in the classroom she now has three jobs, working 50 hours a week as a teaching coach, at a software firm and giving private music lessons.
Her husband is an estate agent. They have a mortgage and three cars and together earn around £80,000 a year.
She says the family loves travelling together but can’t afford to go on holiday this year: “It makes me feel sad for my kids, more than anything, that we can’t give them a week away.
“We have food on the table, we’ve got heating, we’ve got cars to drive. But there are definitely some luxuries that we’ve cut back on recently.
“We don’t do expensive supermarkets. We don’t do expensive brands. We do whatever’s on offer for that particular week. My eldest son has started driving, which has then had an impact on my daughter’s horse-riding lessons.”

Louise Schwartz
Louise adds that the family have a hot tub in the garden that they bought years ago, but because of the cost of electricity, they don’t use it.
I ask her: “What does it say that a teacher and an estate agent both working full time can’t afford to go on holiday this year?”
She replies: “I think a lot of people might not be surprised by that because I think people are probably in a similar position but maybe we just don’t talk about it.”
Full-time workers tell us again and again they thought their lifestyles would be more comfortable – that the work ethic would be delivering more than it is.

Heidi Boot
It seems the dissatisfaction is not only what one person described as “robbing Peter to pay Paul”, but also the lack of what people refer to as “pleasure money”.
Heidi Boot is what you might call the backbone of the middle classes – running a small business full-time called HB Aesthetics, a salon that does eyebrows, eyelashes and nails.
“I feel like everybody is stretching their appointments. People are working so hard for their money and they’ve got nothing to show for it. They’ve paid all their bills and now they’ve got nothing left to spend on themselves,” she says.
“It shouldn’t be that way. But because I see it all the time I feel like it’s just the normal now.”
Read more UK news:
Hitler-inspired boy plotted terror attack at mosque
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The constituency of Cannock Chase has always voted the way of the country – and at the last election showed significant support for Reform.
The financial woes will worry the government, which insists it’s taking action to give workers more money in their pockets.
But there’s no denying the despairing mood of middle England in the political battlegrounds that brought Labour to power.
Business
O2 arena lease snapped up by pensions giant Rothesay
Published
1 day agoon
August 10, 2025By
admin
The long-term lease to the O2, London’s best-known live entertainment venue, has been sold to Britain’s biggest pensions insurance specialist.
Sky News understands a deal was signed last week for Rothesay, the title sponsor of England’s home Test cricket matches, to acquire the landmark’s 999-year lease for about £90m.
The agreement, which is likely to be announced within days, comes more than two months after Sky News reported that Rothesay was the frontrunner to clinch a deal.
Rothesay has become one of Britain’s most successful specialist insurers, having been established in 2007.
It now protects the pensions of more than one million people in Britain and makes more than £300m in pension payouts every month.
The auction of the O2 lease kicked off several months ago, when Cambridge University’s wealthiest college, Trinity, instructed advisers to launch a sale process.
Trinity College, which ranks among Britain’s biggest landowners, acquired the site in 2009 for a reported £24m.
The O2, which shrugged off its ‘white elephant’ status in the aftermath of its disastrous debut as the Millennium Dome in 2000, has since become one of the world’s leading entertainment venues.
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Operated by Anschutz Entertainment Group (AEG), it has played host to a wide array of music, theatrical, and sporting events over nearly a quarter of a century.
Trinity College, which was founded by Henry VIII in 1546, bought the O2 lease from Lend Lease and Quintain, the property companies that had taken control of the Millennium Dome site in 2002 for nothing.
In a joint statement issued in response to an enquiry from Sky News, Rothesay and Trinity College Cambridge said they were “pleased to confirm that Rothesay will be the long-term owner of The O2 arena, following a competitive auction process for the lease of this London landmark”.
A spokesperson for Rothesay said separately: “Prestigious and high-quality property assets like the O2 form an important part of Rothesay’s investment strategy, providing the predictable and dependable returns which create real security for the one million-plus pensions we protect.”
Business
Advertising mogul Sorrell approached about S4 Capital deal
Published
2 days agoon
August 9, 2025By
admin
Sir Martin Sorrell, the advertising mogul, has received a number of merger approaches for S4 Capital, the London-listed marketing services group he founded seven years ago.
Sky News can reveal that Sir Martin has been contacted in recent weeks by potential suitors including One Equity Partners, a US-based private equity firm which focuses on acquiring companies in the healthcare, industrials, and technology sectors.
This weekend, analysts suggested that One Equity would seek to combine S4 Capital with MSQ, a creative and technology agency group it bought in 2023.
Further details of the possible tie-up were unclear on Saturday, including whether a formal proposal had been made or whether S4 Capital might remain listed on the London Stock Exchange if a deal were to be completed.
S4 Capital is also understood to have attracted recent interest from other parties, the identities of which could not be immediately established.
In March 2024, the Wall Street Journal reported that Sir Martin had rebuffed several offers from Stagwell, an advertising group led by Mark Penn, a former adviser to President Bill Clinton.
New Mountain Capital, another American private equity firm, was also said at the time to have held talks about buying parts or all of S4 Capital.
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News of One Equity’s approach puts the venture founded by one of Britain’s most prominent business figures firmly in play after a torrid period in which it has been buffeted by macroeconomic headwinds and a number of accounting issues.
Sir Martin founded S4 Capital in 2018, months after his unexpected and acrimonious departure from WPP, the group he transformed from a manufacturer of wire baskets into the world’s largest provider of marketing services.
The businessman, who has voting control at S4 Capital, used his deep network of institutional relationships to raise money for an acquisition spree at S4, which included technology-focused agencies such as MediaMonks and MightyHive.
S4’s clients now include Alphabet, Amazon, General Motors, Meta, T-Mobile, and Walmart.
Sir Martin’s decision to target acquisitions in the digital content and programmatic media arenas reflected the priorities of what he described as a marketing services group for a new era.
At WPP, he was the architect of a now-widely replicated strategy to assemble hundreds of agency brands under one holding company.
By the time he stepped down, WPP was the owner of creative agency networks such as JWT and Ogilvy, while its media-buying muscle was channelled through the global subsidiary GroupM.
The latest approaches for S4 Capital come during a period of profound change in the global marketing services industry, as artificial intelligence dismantles practices and creative processes that had evolved over decades.
Sir Martin has spurned few opportunities to criticise his successor at WPP, Mark Read, as well as the wider advertising industry, in the seven years since he established S4 Capital.
Last month, WPP announced that Mr Read would be replaced by Cindy Rose, a senior Microsoft executive who has sat on the company’s board as a non-executive director since 2019.
“Cindy has supported the digital transformation of large enterprises around the world – including embracing AI to create new customer experiences, business models and revenue streams,” the WPP chairman, Philip Jansen, said.
“Her expertise in this landscape will be hugely valuable to WPP as the industry navigates fundamental changes and macroeconomic uncertainty.”
WPP has also forfeited its status as the world’s largest marketing services empire to Publicis, and will be shunted even further behind the sector’s biggest players once Omnicom Group’s $13.25bn (£9.85bn) takeover of Interpublic Group is completed.
At the time of Sir Martin’s exit from WPP in April 2018, the company had a market capitalisation of more than £16bn.
On Friday, its market value at its closing share price of 367.5p was just £4.23bn.
Last month, the advertising industry news outlet Campaign reported that WPP had held tentative discussions with the consulting firm Accenture about a potential combination or partnership, underscoring the pressure on legacy marketing services groups.
This weekend, it remained unclear how likely it was that Sir Martin would consummate a deal to combine S4 Capital with another industry player such as One Equity-owned MSQ.
Shares in S4 Capital closed on Friday at 21.2p, giving the company a market capitalisation of £140m.
The stock has fallen by nearly 60% during the last 12 months, and is more than 90% lower than its peak in 2022.
At one point, Sir Martin’s stake in S4 Capital was valued at close to £500m.
A spokeswoman for S4 declined to comment, while a spokesman for One Equity Partners said by email: “OEP is not commenting on this matter.”
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Japan and South Korea have a lot at stake in a free and open South China Sea
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