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Federal-Mogul has made an agreed cash offer of $2.43 billion to acquire the UK group T&N. The combined group will be a leading global supplier of automotive parts with 42% of its revenue in North America, 44% in Europe and 14% in the rest of the world.

Publishing groups Reed Elsevier of the UK and Wolters Kluwer of the Netherlands have reached agreement to merge, in a £20 billion ($33 billion) deal. The combined market capitalization of the merged group will be £17.5 billion.

US investment bank Merrill Lynch has made an agreed bid of £3.1 billion ($5.3 billion) to buy Mercury Asset Management, the UK's largest fund management group.

On November 25 1997, UK Chancellor Gordon Brown launched an innovative pre-Budget debate. This was the so-called Green Budget; the colour reflects that of the government's consultative papers, rather than environmental concerns.

A $30 billion restructuring deal will merge the financial services division of BAT Industries and Zurich Insurance. BAT shareholders will own a 45% interest in the merged group, through a listed UK holding company. Zurich Insurance shareholders will own 55%, through a listed Swiss holding company. The new group will be called Allied Zurich. BAT Industries will spin off its tobacco industries into a new company, BAT.

UK energy group BG plans to return up to £1.3 billion ($2.1 billion) of its share capital to shareholders. On October 27 1997, shareholders voted in favour of the company's proposed capital reorganization. The number of ordinary shares in the issue will be reduced by 11.8% to reflect how much of the company's current market capitalization is being returned to shareholders. In this way the cost of capital to the company will be reduced with the greater use of debt rather than equity finance.

US telecommunications group MCI Communications has agreed to merge with WorldCom, the US long-distance telephone operator. The deal is valued at $37 billion.

Foreign investment flooded into Latin America in 1997, but investors should note that the region cannot be treated as a homogeneous unit, both in terms of tax rules, and in terms of the level of advice provided. Phillippa Cannon and Moray Borthwick report

In an attempt to circumscribe tax planning, the UK government is toying with a general anti-avoidance provision. Peter Nias and Gareth Amdor, of Simmons & Simmons, London, argue that such a provision should be judged against first principles – not least fairness

International Tax Review takes you behind the scenes of this year’s deals. Advisers from Ernst & Young, Herbert Smith, KPMG, Haarmann, Hemmelrath & Partner and Revisuisse Price Waterhouse examine deals in which tax played a decisive role