EU: Has Informed BHP, Rio Tinto About JV Investigation
October 15 2010 - 9:22AM
Dow Jones News
The European Commission has informed Australian iron ore miners
BHP Billiton PLC (BHP) and Rio Tinto Ltd. (RTP) about the state of
its investigation into the proposed joint venture between the two
companies, a spokeswoman said Friday.
The commission's competition staff has "informed the parties
during a state-of-play meeting today about the results of the
preliminary investigation," said Amelia Torres, spokeswoman for
Competition Commissioner Joaquin Almunia.
The commission hasn't yet sent the companies a formal letter to
outline its concerns, she explained.
In January, the commission, the European Union's antitrust body,
opened an investigation into the JV, citing concerns that the deal
might have harmful effects on price competition in the worldwide
market for iron ore transported by sea.
Clearance from the EU's competition regulator is seen as the
biggest potential hurdle to the joint venture, which failed in its
initial form in 2008.
Rio Tinto and BHP Billiton are, respectively, the second- and
third-largest producers of iron ore in the world, after Brazil's
Vale SA, the commission said.
-By Alessandro Torello, Dow Jones Newswires; +32 2 741 14 88;
alessandro.torello@dowjones.com