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@andyp
It isn't a genuine Eddy Merckx, but was built by Falcon Cycles who licensed the Merckx name. I had one as a nipper. They were cheap, I think about £80 in the late 70s, but mine was my first proper bike with derailleur gears and I rode it all over the place.
Surface rust should just come off with a stiff wire brush. Good luck with restoring it.