UPDATE: EU Extends BHP-Rio Tinto Bid Antitrust Review
Friday July 4th, 2008 / 19h08
(This adds more details) By Alex MacDonald and Carolyn Henson Of DOW JONES NEWSWIRES BRUSSELS/LONDON -(Dow Jones)- The European Commission Friday launched an in-depth investigation into Anglo-Australian miner BHP Billiton Ltd.'s (BHP) proposed bid, which is valued at about $170 billion, for rival Rio Tinto PLC (RTP). The commission said its initial market investigation has indicated that the proposed takeover raises serious doubts as to its compatibility with the single market. There are particular concerns about the markets for iron ore, coal, uranium and aluminum and mineral sands, because the proposed takeover could result in higher prices and reduced choice for these companies' customers. However, a decision to open an in-depth inquiry doesn't prejudge the final result of the investigation, it said. The commission now has 90 working days, until Nov. 11, to take a final decision on whether the concentration would significantly impede competition in the European Union. The move came on the same day that BHP Billiton announced a near doubling in annual in prices for iron ore lump, a key ingredient in steelmaking, that was in line with a similar rise achieved by the Anglo-Australian rival Rio Tinto PLC (RTP). The E.U.'s antitrust chief Neelie Kroes said in a statement: "the commodities produced by BHP Billiton and Rio Tinto are basic inputs for major industrial sectors and are therefore crucial for Europe's competitiveness. "The recent surge in commodity prices has had a serious impact on the industries buying these commodities, their customers, and ultimately all the consumers in Europe and elsewhere in the world." The European steelmakers association or Eurofer has already called upon the E.U. to block the deal on grounds that it will concentrate too much of the internationally traded iron ore market in the hands of an even smaller number of producers. Rio Tinto and BHP Billiton are the world's second- and third-largest iron ore producers after Brazil's Companhia Vale do Rio Doce (RIO). The top three producers control 80% of the world's seaborne iron ore market, according to figures provided by research firm Raw Materials Group. A combined Rio Tinto-BHP Billiton would control 38% of the world's seaborne iron ore market. Although the E.U. has extended its review to a second phase, U.S. antitrust authorities Thursday gave the greenlight for the deal to go ahead. In Australia, the Australian Competition and Consumer Commission has given a provisional date of Aug. 13 for its ruling on the deal. BHP Billiton plans to propose an all-share takeover, once it has recieved regulatory approval from relevant authorities. The proposed bid has valued Rio Tinto at more than $170 billion, but has fallen to around $160 billion based on Friday's share price close. -By Carolyn Henson and Alex MacDonald, Dow Jones Newswires; +32 2 741 1480; carolyn.henson@dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=N3pJNd1FyFKKQZIFIr7Pgg%3D%3D. You can use this link on the day this article is published and the following day.
Rio Tinto figure parmi les leaders mondiaux de la recherche, de l'exploration et de l'exploitation minière. Le CA par famille de produits se répartit...
