Source:AFP
India warns EU governments against racism in steel takeover bid
LONDON (AFP) - India's trade and industry minister warned European governments against racist reactions to Mittal Steel's takeover bid for rival Arcelor.
"This is an era of globalisation, crossborder investment and liberalisation, not one in which investors are judged by the colour of their skin in breach of ... national treatment rules," Kamal Nath told the Finanical Times in an interview on Saturday.
The Netherland-based Mittal group headed by Indian billionaire Lakshmi Mittal has made an 18.6 billion euro (22.3-billion-dollar) bid for Luxembourg-based Arcelor, which would create a steel company with an output three times bigger than its three nearest rivals combined.
The hostile bid has raised an outcry among politicians in France and Luxembourg.
Nath accused the European governments opposing the bid of discrimination and warned: "If the colour of the shareholder, the nationality of the shareholder, or the passport of the shareholder is to be looked at, then we will have to give new definitions to national treatment."
He warned protectionist countries to "wake up to the new economic architecture" represented by the rise of India and China as economic powers.
Governments should allow shareholders to determine the outcome of the bid, he told the paper.
"The Indian governement is very concerned. I raised this with Peter Mandelson (EU trade commissioner) on February 1 and will raise it again." he said.
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