As expected, government confirms LNM to buy PHS

The government gave the go ahead for the LNM Group, controlled by Indian businessman Lakshmi N. Mittala, to take over Polish Steel Mills (PHS). This decision means that PHS will become part of the world's second largest steel concern. The LNM Group has been carrying out unsuccessful negotiations with the trade unions concerning the privatization social package. Although the side have so far not been able to reach an agreement, the government decided to approve the transaction following the recommendation of State Treasury Minister. "We will sign the binding contract in a few days. The terms are still confidential," State Treasury Minister Piotr Czyżewski told a press conference yesterday. According to unofficial information, it is believed that the purchase will cost LNM around zł. 6 billion. A.K.