Erdemir’s buyer tied with EU quotas
Final bidding negotiations on
Turkey's largest steel mill
Erdemir's privatization will be held today in Ankara.
The privatization is carried out on the same day that talks about
Turkey's membership to EU are held.
Approaching to the final, one of the issues drawing the EU's concern on the privatization of
Erdemir was the transfer of
Turkey's iron and steel
production quotas limitations due to EU to the buyer.
According to the tender specifications, “the buyer accepts to confirm with the liabilities arising within the framework of relations with international organisations.” Therefore, the buyer will have to obey with the quota limitations of the EU.
In addition to the quotas, the EU expects
Turkey to prepare a National Re-Structuring Program, which is to be completed by November 30, 2005. Now, the question waiting for an answer is whether the buyer company will be subject to this restructuring program.
Normally, if the buyer of the privatized company stocks obtains the majority of votes before November 30, then the company will not be subject to the program. However, there is no explanation about what the situation might be if the transfer of the stocks cannot be completed by that time.