'No rush abroad to buy Indian steel companies'

A S Firoz, steel strategy analyst and former chief economist at the Union steel ministry, said in an interview that there is no rush among foreign companies to acquire Indian steel firms. The excerpts of the interview. On overseas companies acquiring Indian rivals:

"I don't think there is any rush overseas to buy Indian steel companies. Same is the case in China where national laws prohibit companies from acquiring a majority stake. It is the Indian companies that are looking around to buy small and mid-sized companies, wherever they can. There is a major scope for consolidation among Indian companies.''

On companies combining to thwart takeover bids:

"The benchmark size of a global steel company has now gone up to 45 million tonne from the earlier 20 to 25 million tonne. So, I think we will see merger of a few companies to reach the size of 40 to 45 million tonne.''

Mittal Steel bought Arcelor last year for $38.3 billion and Tata Steel acquired Corus Group for $12 billion in January. On India's decision to ask steel companies to lower prices:

"In India, prices are above $600 a tonne and these are fairly good prices. The demand is buoyant. The companies raised the prices a few days back so the hit will not be significant, however, one has to remember that money gone is gone.''