Rio Tinto and BHP Billiton have called off their multi-billion dollar
joint venture. The Australian mining giant bow to pressure from the
competition watchdog. For a month-long fight can end. Steel producers
are pleased, however.
BHP and Rio Tinto can not work as desired.
Source: dpa
HB MELBOURNE. The iron ore producers BHP Billiton and Rio Tinto have
failed in their plan for a 116 billion dollar joint venture, the
resistance of the regulator. Both companies said the first time in
mid-2009 announced plans for a joint iron ore production in Western
Australia from Monday. Competition authorities of some countries have
recently announced opposition, including the EU Commission and the
Bundeskartellamt. "I am disappointed that the regulators were not
ultimately in our opinion," said Rio Tinto chief Tom Albanese.
This would encourage competition, the alliance, he said. The major
steel companies, however, welcomed the cancellation. Most of the
companies had feared rising prices for key commodities of iron ore in
the steel industry.
