$17.8 bn merger will make Ispat International the world's largest steel maker
New Delhi: Ispat International, owned by NRI business tycoon Lakshmi N. Mittal, is set to emerge as the world's largest steelmaker on completion of a $17.8-billion deal under which the company is to merge with the Netherlands-based LNM Holdings and the US-based International Steel Group to form a new company, Mittal Steel Corporation.

The company has announced that it will acquire LNM Holdings, which is owned by the Mittal family, for $13.3 billion in shares and the International Steel Group for $4.5 billion in cash and shares.L.N. Mittal will be the Chairman and Chief Executive of Mittal Steel.

Simultaneously, Ispat International and International Steel Group Inc announced that their boards of directors have unanimously approved a definitive agreement under which the two entities would merge.

"The combined Mittal Steel will be the largest global steel company in the world and will be listed on the New York Stock Exchange and Euronext Amsterdam," a statement issued by the company said.

LNM Holdings is one of the world's largest and most profitable steel companies and also has substantial mining assets. Its revenues were $9.9 billion and operating income was $3.2 billion in the first nine months of 2004.

Upon completion of both the transactions, Mittal Steel will have operations in 14 countries, in four continents and will have 1,65,000 employees.
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EC adopts 'Generalised System of Preferences' for trade
New Delhi: The European Commission has adopted a proposal setting out the details of the EU system of trade preferences (Generalised System of Preferences - GSP) for the period 2006-08, as part of its programme to offer preferential duty entry of products from the developing world into the 25-member EU countries.

The GSP is a key instrument to help developing countries reduce poverty by stimulating their exports to the EU. The Commission proposes to improve the current system in a number of areas: simplification (cutting back from five to three separate arrangements); expanding the product coverage; focusing the benefits on those developing countries most in need; and setting up an additional GSP benefits (`GSP+') to encourage sustainable development.

The text will now be sent to the EU Member States, European Parliament and Economic and Social Committee so that it can be adopted in time for entry into force on July 1, 2005.

India remains a major GSP beneficiary. Its share of total GSP imports into EU was 11.8 per cent in 2002 and its main products qualifying for GSP benefits include textiles and clothing. India might also qualify for the new GSP plus.

The proposed GSP plus system based on clear, transparent and non-discriminatory criteria fully complies with the WTO Appellate Body ruling in the case brought forward by India against the EU's GSP drugs regime. The WTO had requested that the EU brought its GSP drug system in compliance with WTO rules no later than July 1, 2005.
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