The board of South African steel giant Iscor has approved a proposal that the group’s name be changed to Ispat Iscor Limited.
This in is line with the global practice of LNM Group — the world’s second-largest steel maker, which last week gained control of the South African group — to add the word Ispat to the names of its subsidiaries.
“The Ispat name will identify Iscor as being part of the global LNM Group, with all the benefits of the significant brand awareness that has been built up in the Ispat name over the years,” Iscor said on Tuesday.
It said a circular will be sent to shareholders shortly to consider a special resolution for the change of name.
Last week LNM Holdings NV increased its stake in Iscor to above the 50% mark, following the acquisition by LNM owner Lakshmi Mittal of another 2 000 Iscor shares.
Earlier this month, South Africa’s Competition Tribunal unconditionally approved the merger of LNM and Iscor. LNM has undertaken to make a full offer to minorities, once its stake in Iscor breaches 60%.
Iscor has stated that the merger with LNM holds extensive benefits for Iscor and South Africa.
LNM will be able to provide Iscor with technological support, which has hitherto not been available to Iscor, since this cannot be shared with the company until the merger has been concluded, Iscor said.
Iscor’s corporate affairs executive, Phaldie Kalam, said previously that LNM’s involvement with Iscor has been extremely valuable in respect of the business, technical, marketing and purchasing support provided by LNM to Iscor in terms of a business assistance agreement between the two companies.
The tie-up with LNM has resulted in annual sustainable savings of R388-million for Iscor.
“As a commodity business, where one’s competitive advantage is often based simply on the quality of the product offering and the company’s efficiencies, it is essential that Iscor become part of global steel advancements and does not fall behind in its endeavours to be competitive,” Kalam said.
“The merger with LNM is designed to keep the South African steel producer at the cutting edge of the steel industry,” said Kalam. — I-Net Bridge