The European Commission has decided to initiate a detailed investigation under EU merger regulations into the proposed merger of the world's second largest mining company, BHP Billiton, and the world's third largest mining company, Rio Tinto, which will give the combined entity a market share of almost 40 percent of the global seaborne iron ore market, of which Brazilian miner Vale already holds more than 33 percent.
The European Commission, in charge of antitrust rulings for the 27-nation EU, will further investigate the proposed $163 billion acquisition for another 90 working days and announce a decision by November 11.
As previously reported by SteelOrbis, the Antitrust Division of the US Department of Justice last week gave partial approval to the merger after its review; however, the takeover also requires the green light from Australia and South Africa.
The decision of the European Commission regarding the planned BHP-Rio merger has in particular been welcomed by the European Confederation of Iron and Steel Industries (EUROFER). Commenting on the decision, EUROFER director general Gordon Moffat stated, "We are confident that the full investigation will demonstrate that our concerns are justified and that this merger should not be permitted to proceed. We will cooperate fully with the Commission in this second phase of the investigation."