'Nationality not an issue in Mittal-Arcelor case'

New Delhi, May 16: The Ambassador and Head of Delegation of the European Commission in India today said issues of nationality will not have any relevance in the Mittal-Arcelor case and only business and competition will be considered.

''The Mittal-Arcelor case is being examined under the Merger Regulation, like many other market investigations across Europe, and this does not stipulate Mittal to seek prior permission before acquiring the shares,'' Mr H E Francisco da Camara Gomes said at a seminar on 'Merger and Acquisitions in the EU-opportunities for India Inc', organised by the Confederation of Indian Industry (CII) here.

Mr Gomes said that the Merger Regulation could give its approval after the merger, taking into account other factors.

He said that any such decision would be annulled by the Court of First Instance, if it appeared to have been taken on grounds other than competition as competition policy was the core of the European Integration.

Mr Gomes said that the core of the European Union's competition was surveillance of abuse of dominant positions, monitoring of state aids, mergers and acquisitions.

Welcoming Indian investments in EU, Mr Gomes said that times have changed and corporate India was now investing in the EU, UK, in the enlarged EU and other countries even though the number was not very high at present.

''The very fact that these investments are happening is showing a new global trend,'' he said.

He announced that the EU was currently working with the Indian Government about defining new scenarios for trade and investment and a new ambitious agreement between India and EU would take concrete shape in a few years from now.

Earlier, there was a rush by the Multi National Companies (MNCs) to set shops in India, today Indians were going abroad for acquisitions in a big way, Bhasin and Company (Advocates) Managing Partner Lalit Bhasin said.

He said that laws were being put in place and in particular a Competition Act had already been passed by Parliament but it had been held up because of a Supreme Court order.

Proposing the vote of thanks, Mr Olivier Monange, Attorney at Law in Paris and Brussels and Partner, DS Avocats, stated that India had not only opened its markets but it was also going abroad for acquisitions and mergers.

Out of the 136 mergers and acquisitions that Indian companies have done last year, 50 per cent were in the EU, he said.

UNI