Brussels, 29/03/2001 (Agence Europe) - The steel groups Aceralia (Spain), Usinor (France) and Arbed (Luxembourg) have postponed until May - instead of end March - the official presentation of their proposed merger before the European Commission competition services.
The reasons for this postponement are said to be linked to the negotiations conducted by the three partners regarding disinvestment, so as not to be accused of hampering competition. We recall that Aceralia, Usinor and Arbed announced in February that they wished to merge all their activities in autumn 2001 (see EUROPE of 19-20 February, p.18). The merger, carried out by share swap, would give rise to the world's largest steel group. The latter, provisionally called NewCo, would employ over 110,000 with an estimated turnover of nearly EUR 30 billion.
After announcing the planned merger, the three partners had announced they were "ready to accept transfers" to obtain approval from the European Commission. Usinor CEO Francis Mer expressed confidence saying: "We do not think that the European Commission is making unwarranted obstacles to this operation which strengthens Europe. We know what subjects will give rise to discussion".
Presenting the results of its group for the financial year 2000, on 27 March, Fernand Wagner, Arbed President, pointed out that NewCo should target the United States market if there are no opportunities in Europe. Predicting there could be difficulties in this respect, Mr Wagner warned the Bush Administration against all protectionist measures, "as this could create problems from a commercial point of view". He said that no decision has yet been taken concerning the stock exchange quotation of NewCo in the United States. He stressed that the three partners will await the European Commission's decision envisaged for October. "We shall see in due course what we must disinvest", he stated. In his view, the merger operations should be concluded by the end of the year so that the new company may be operational at 100% by January 2002.