Corus raises competition concerns over BHP bid for Rio Tinto
Leading steel maker Corus, which was taken over by India's Tata Steel last year, fears that BHP Billiton's bid to takeover mining major Rio Tinto would lead to competition issues.
By PTI |
LONDON: Leading steel maker Corus, which was taken over by India's Tata Steel last year, fears that BHP Billiton's bid to takeover mining major Rio Tinto would lead to competition issues, the British media reported today.
"The steel maker Corus has stepped up its campaign against BHP Billiton's attempt to take over mining rival Rio Tinto by complaining to the European Union about the deal," The Sunday Times reported.
According to the newspaper, the Chief Executive of Corus, Philippe Varin is concerned that the 100-billion pounds tie-up would raise competition issues.
"We were recently questioned by the EU about BHP/Rio," the report said quoting Varin and added that, "We gave our very, very strong negative sentiments on further concentration in the iron-ore industry."
Varin remains the Chief Executive of Corus after the takeover of the firm by India's Tata Steel.
Several regulators across the world are examining BHP's hostile takeover plan of Rio Tinto.
The report said BHP and Rio Tinto have called for the traditional annual round of price talks to be replaced by an index pricing system that would give them much greater flexibility.
"If they combined, the pair would control about 36 pc of the worlds seaborne trade in iron ore, which sets the price used in annual contract talks. Together with Brazilian miner Vale, the world leader, the tie-up would in effect create a duopoly," it added.
"The steel maker Corus has stepped up its campaign against BHP Billiton's attempt to take over mining rival Rio Tinto by complaining to the European Union about the deal," The Sunday Times reported.
According to the newspaper, the Chief Executive of Corus, Philippe Varin is concerned that the 100-billion pounds tie-up would raise competition issues.
"We were recently questioned by the EU about BHP/Rio," the report said quoting Varin and added that, "We gave our very, very strong negative sentiments on further concentration in the iron-ore industry."
Varin remains the Chief Executive of Corus after the takeover of the firm by India's Tata Steel.
Several regulators across the world are examining BHP's hostile takeover plan of Rio Tinto.
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The report said BHP and Rio Tinto have called for the traditional annual round of price talks to be replaced by an index pricing system that would give them much greater flexibility.
"If they combined, the pair would control about 36 pc of the worlds seaborne trade in iron ore, which sets the price used in annual contract talks. Together with Brazilian miner Vale, the world leader, the tie-up would in effect create a duopoly," it added.
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