BHP Billiton chief moves to ease competition concerns on Rio bid
BHP Billiton and Rio Tinto would have only a "modest" share of world iron ore markets if a proposed mega-merger between the resources giants went ahead, BHP chief Marius Kloppers said Wednesday.
By Agencies |
SYDNEY: BHP Billiton and Rio Tinto would have only a "modest" share of world iron ore markets if a proposed mega-merger between the resources giants went ahead, BHP chief Marius Kloppers said Wednesday.
As competition regulators in Europe and Australia scrutinise BHP's hostile $147 billion takeover bid for Rio, Kloppers sought to ease concerns it would create a behemoth capable of controlling global iron ore supply.
He said a combined entity would control about 25 per cent of the world iron ore market and around 20 per cent of iron ore consumed in China, one of the major critics of the proposed deal.
"Clearly we would like to grow that market share by producing more product, but in commodity market terms these are relatively modest market shares," Kloppers told Sky News Australia.
Rio Tinto and BHP Billiton are the world's second and third largest iron ore producers, respectively.
Kloppers also said he did not think a rival bid for Rio Tinto would emerge.
"We believe that our bid will be the only bid that is ever made for Rio Tinto," he said.
As competition regulators in Europe and Australia scrutinise BHP's hostile $147 billion takeover bid for Rio, Kloppers sought to ease concerns it would create a behemoth capable of controlling global iron ore supply.
He said a combined entity would control about 25 per cent of the world iron ore market and around 20 per cent of iron ore consumed in China, one of the major critics of the proposed deal.
"Clearly we would like to grow that market share by producing more product, but in commodity market terms these are relatively modest market shares," Kloppers told Sky News Australia.
Rio Tinto and BHP Billiton are the world's second and third largest iron ore producers, respectively.
Kloppers also said he did not think a rival bid for Rio Tinto would emerge.
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"We believe that our bid will be the only bid that is ever made for Rio Tinto," he said.
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