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Arcelor-Mittal deal is example of unfair competition - lawmaker

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Arcelor's decision to merge with world No.1 Mittal Steel, rejecting a rival bid from Russia's Severstal [RTS: CHMF] is an example of unfair competition, a member of Russia's lower house of parliament said Tuesday.
MOSCOW, June 27 (RIA Novosti) - Arcelor's decision to merge with world No.1 Mittal Steel, rejecting a rival bid from Russia's Severstal [RTS: CHMF] is an example of unfair competition, a member of Russia's lower house of parliament said Tuesday.

Viktor Pleskachevsky, who chairs the State Duma's property committee, said "unfair competition was used" in the deal between the metals giants.

His comments came after President Vladimir Putin, speaking at a conference in the Foreign Ministry, said earlier that Russia was ready to interact and compete on the international arena, but that the country would protect itself and its citizens from unfair competition.

The board of Luxembourg-based Arcelor Sunday night approved a deal with Mittal Steel after the London-based company raised its bid. Arcelor and Mittal Steel will hold 50.6% and 49.4%, respectively, in the new company. The decision torpedoed a proposed merger with Russia's Severstal, which wanted a 25% stake in what would have been the world's largest steelmaker after its proposed merger.

Pleskachevsky said, "It is clear that many Western politicians and businessmen benefit from holding back our [Russian] companies from entering European and world markets - many people are not pleased by our success."

However, he added: "It is good to see that our companies are able to compete on almost equal conditions with large western companies, and the Arcelor affair confirms this."

On Monday, State Duma Speaker Boris Gryzlov and Industry and Energy Minister Viktor Khristenko also slammed the merger.

Gryzlov said, "I regard the events around this deal as an example of serious obstacles Russian business is facing when it enters foreign markets," while Khristenko labeled it an example of a "double approach" and called it a "bad sign."

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