Jun 9 2004
The LNM Group, the world’s second largest and most global steel producer, today welcomed the decision by the South African Competition Tribunal allowing the company to raise its shareholding in Iscor Ltd beyond 50%.
The Tribunal’s ruling follows the Competition Commission’s recommendation on 13th May that LNM should be permitted to take majority control of Iscor. Both the Competition Commission and the Competition Tribunal agreed with LNM’s submission that competition in the South African steel industry will not be affected if the company increases its shareholding above the 50% threshold.
LNM currently holds 49.9% of Iscor shares through LNM Holdings NV, with the balance of the shares being listed on the Johannesburg Stock Exchange (JSE).
LNM Holdings has been a long-term investor in Iscor, purchasing its first stake in the company in 2001, when it was undergoing a major corporate restructuring process.
The company remains committed to further building Iscor and the South African steel industry.
Commenting, Lakshmi N. Mittal, Chairman, LNM Group, said:
“We are very pleased with the findings of the Competition Tribunal that the proposed merger of Iscor with LNM does not result in any structural change affecting the competitive landscape in South Africa by preventing or lessening competition and, therefore, does not raise any competition concerns.”
“The approval will enable Iscor to receive our proprietary technology as well as access our proprietary marketing and procurement processes. It will also enable Iscor to ask for continuing business assistance from LNM to further improve efficiencies and achieve cost savings. Last but not least, it will also enable Iscor employees to gain exposure to training and different manufacturing environments to develop skills and expertise which will benefit Iscor more effectively.
“LNM remains committed to its investment in South Africa and looks forward to further growth and development at Iscor. We are also committed to making our contribution towards the sustainable development of the downstream sector.”
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