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Société Générale has acquired Hambros Banking Group from Hambro in a deal worth £300 million ($483 million). The banking group includes Hambros bank and its subsidiaries and associates, together with shareholdings in certain other companies. Société Générale was advised by tax partner Francis Sandison at Freshfields in London. Norton Rose acted for Hambro. Tax advice came from partner Louise Higginbottom and assistants Dominic Stuttaford, Nick Stretch and Mark Middleditch.

Zeneca is to acquire a US fungicide business owned by Japanese chemicals company Ishihara Sangyo Kaisha. Zeneca will acquire ISK Biosciences and the international distribution rights outside Asia-Pacific. The deal is valued at $500 million. Davis Polk & Wardwell in New York is acting for Zeneca, with advice from tax partner Mario Verdolini and assistant Avrohom Gelber. KPMG is also advising.

Virgin has sold Virgin Radio to Ginger Media Holdings for £81 million ($130 million). Mark Joscelyne from law firm Olswang advised Ginger Media Holdings on tax. UK City firm Macfarlanes advised Virgin. Partner Ashley Greenbank was responsible for tax advice.

The Spanish government is to privatize Aceralia, the leading steel group in Spain. The value of the transaction is Pta123 billion ($816 million), but this will increase to Pta137 billion on excercise of the over-allotment option.

The US natural gas utility KN Energy is to acquire gas pipeline company Midcon Corporation from Occidental Petroleum. The deal is worth $3.49 billion. KN has already spent $1.5 billion on acquisitions since 1989. The transaction will provide KN with more than 41,600 kilometres of pipeline in 15 US states, and boost annual revenue to $4.7 billion.

US bank First American has made a successful $2.7 billion stock bid to acquire Deposit Guaranty. Wachtell, Lipton, Rosen & Katz in New York is acting for First American. Tax partner Adam Chinn is dealing with tax issues raised by the bid.

A decision of the European Court of Justice shows that most EU member states have not correctly implemented the parent-subsidiary directive 90/435 of July 23 1990 (October 17 1996; Denkavit). A law of December 23 1997 is Luxembourg's response to this case law. Concerning the exemption of dividends received by a Luxembourg company, a participation of 10% of the subsidiary's share capital (or having an acquisition value of Lfr50 million) must be held for 12 months. This holding period may be satisfied before or after the relevant dividend distribution. Before 1998, a holding period of 12 months at the end of the year of distribution was required. No exemption was therefore available for dividends received by a Luxembourg parent from a subsidiary, the shares of which had been held for a long period of time, but were alienated before the end of the financial year. Despite the compliance with the holding period requirement of the parent-subsidiary directive, these dividends were taxable in Luxembourg.

LucasVarity is to sell its diesel engines business to Caterpillar, the world's largest maker of construction equipment. The deal, worth $1.325 billion, will enhance Caterpillar's market position in small engine construction.

Directive 69/335/EEC — Regional charge on vehicle registration certificates.

Directive 69/335/EEC — Contribution of immovable property.