Wednesday 05 November 2008
BHP takes a hit in Rio bid
European Union regulators have expressed antitrust concerns with BHP Billiton's hostile bid for rival Rio Tinto that would create the world's largest iron ore miner In a statement posted yesterday on the BHP’s website, the company confirmed that it has received a Statement of Objections from the European Commission in relation to its pre-conditional offer for Rio Tinto.
The statement of objections is a formal charge sheet that lays out how a deal may damage competition.
“BHP Billiton is continuing to work cooperatively with the European Commission and, in accordance with the established merger review process, will be responding in due course to address the issues raised,” the BHP Billiton statement said.
The respective companies’ iron ore operations, the second and third largest in the world, are said to be at the centre of the Commission’s concerns.
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