A fight for control of one of Australia’s last steelworks has narrowed to two potential buyers, pitting a billionaire against India’s third-largest steelmaker.

The federal and state governments have reduced the number of bidders for the financially stricken Whyalla steelworks from five to two.

BlueScope Steel can still use its rights to match a final bid, but Matt Latimore’s M Resources and India’s Jindal Steel are the frontrunners for the steelworks.