Heat Treat Industry News
April 19, 2010
ACCC delays BHP-Rio tie-up review to give them time to respond From:
AUSTRALIA'S competition regulator has suspended its timetable for reviewing a proposed iron ore joint venture between BHP Billiton and Rio Tinto to give the parties time to respond to an earlier request for information.
The Australian Competition and Consumer Commission announced on its website that the schedule had been suspended "to allow the proposed joint venture parties additional time to respond to the ACCC's information request of 30 March, 2010".
It is not clear whether the extension will disrupt the ACCC's plan to announce its findings on the proposed alliance by May 27, a date still listed on the watchdog's website.
BHP and Rio want to combine their operations in the Pilbara region of Western Australia.
A spokesman for Rio declined to comment while spokesmen for the ACCC and BHP were not immediately available.
The ACCC had originally planned to announce findings on February 24 but this was delayed to April 28 and then May 27.
Regulatory approval by the European Commission is considered the biggest barrier to the joint venture, but the ACCC has taken a tougher line than expected in its statements to date, indicating it plans a thorough study of the deal.
Last week, The Australian revealed that BlueScope, one of the most fervent critics of the deal, had failed to meet the deadline for delivery of a formal response to the ACCC investigation. It is understood Australia's biggest steelmaker has opted instead to continue discussions with the regulator and the proponents of the deal over its concerns about the implications of the merger.
It is claimed that some within Rio are hoping competition regulators will scuttle the deal, which has become increasingly favourable for BHP thanks to a rise in iron ore prices. Publicly, Rio remains committed to a deal that the two miners say will save $10 billion. And some market observers say Rio chief executive Tom Albanese can't afford to admit another misstep.
Analysts from numerous investment banks, including Royal Bank of Scotland, Citigroup and UBS, say they are becoming more sceptical about the deal being finalised later this year because of regulatory hurdles and the possibility that Rio Tinto shareholders will not approve it.
Source:
http://www.theaustralian.com.au/business/accc-delays-bhp-rio-tie-up-review-to-give-them-time-to-respond/story-e6frg8zx-1225855204747
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