Australian competition watchdog probes BHP-Rio merger plan
Australia's competition regulator launched an inquiry today into mining giant BHP Billiton's hostile takeover of rival Rio Tinto. The Australian Competition and Consumer Commission said it had received a submission from BHP that enabled it to comm...
By Agencies |
SYDNEY: Australia's competition regulator launched an inquiry today into mining giant BHP Billiton's hostile takeover of rival Rio Tinto. The Australian Competition and Consumer Commission said it had received a submission from BHP that enabled it to commence market inquiries into the proposed deal.
BHP launched its takeover bid last year and raised its offer to USD 147 billion in February but Rio continues to resist, saying the price is too low in a market buoyed by unprecedented resources demand from China. The ACCC said submissions about the proposed deal should be provided by July 1. China has expressed concerns a mega-merger could create a behemoth with too much power over the world iron ore market. The Brussels-based International Iron and Steel Institute (IISI) has called for the deal to be blocked, warning it would create a "virtual monopoly" in iron ore mining.
BHP launched its takeover bid last year and raised its offer to USD 147 billion in February but Rio continues to resist, saying the price is too low in a market buoyed by unprecedented resources demand from China. The ACCC said submissions about the proposed deal should be provided by July 1. China has expressed concerns a mega-merger could create a behemoth with too much power over the world iron ore market. The Brussels-based International Iron and Steel Institute (IISI) has called for the deal to be blocked, warning it would create a "virtual monopoly" in iron ore mining.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
