Steelmakers warn BHP-Rio Tinto deal would create 'virtual monopoly'
The Brussels-based International Iron and Steel Institute (IISI) said that the two companies already produce 70 per cent of global iron ore along with Brazilian rival CVRD.
By Agencies |
BRUSSELS: A proposed merger between mining giants BHP Billiton and Rio Tinto would create a "virtual monopoly," a steelmakers' association warned on Monday, urging antitrust watchdogs to block the deal.
The Brussels-based International Iron and Steel Institute (IISI) said that the two companies already produce 70 per cent of global iron ore along with Brazilian rival CVRD.
"Any further consolidation between the big three would create a virtual monopoly in the business," IISI Secretary General Ian Christmas said in a statement.
"Not only will the steel industry strongly oppose the potential merger of BHP Billiton and Rio Tinto, but it is vital that the competition authorities in the EU, USA, China, Australia and Japan also recognise the threat that this merger poses to the interests of steel consumers and the general public," he added.
"This merger is not in the public interest and should not be allowed to proceed."
Earlier this month, Rio Tinto rejected BHP Billiton's three-shares-for-one takeover offer from BHP, which is said to be weighing the possibility of improving its bid.
The Brussels-based International Iron and Steel Institute (IISI) said that the two companies already produce 70 per cent of global iron ore along with Brazilian rival CVRD.
"Any further consolidation between the big three would create a virtual monopoly in the business," IISI Secretary General Ian Christmas said in a statement.
"Not only will the steel industry strongly oppose the potential merger of BHP Billiton and Rio Tinto, but it is vital that the competition authorities in the EU, USA, China, Australia and Japan also recognise the threat that this merger poses to the interests of steel consumers and the general public," he added.
"This merger is not in the public interest and should not be allowed to proceed."
Earlier this month, Rio Tinto rejected BHP Billiton's three-shares-for-one takeover offer from BHP, which is said to be weighing the possibility of improving its bid.
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