LNM and DTI agree on pricing issue
According to recent news in the market, upon the scope of the agreement signed between LNM Holdings and Department of Trade and Industry (DTI) of South
Africa, a new pricing model will be developed for South
Africa steel sector. It is stated that, the new pricing model will be in line with World Trade Organization (WTO) rules.
As previously reported by SteelOrbis, South African government was planning to interfere Iscor pricing policy with the purpose of procuring integration in South African steel industry.
At the meeting held in London between LNM Holdings and DTI, LNM's share in Iscor and government's plans for procuring integration in local steel industry were discussed. As revealed by South African government, share of Lakshmi Mittal, owner of LNM Holdings, will not be increased before a “developmental pricing model” is established.
Now the Competition Commission will be informed about the agreement and reveal its decision about the shares of Mittal in Iscor accordingly.