The European Confederation of Iron and Steel Industries (EUROFER) has welcomed the Statement of Objections issued by the European Commission (EC) regarding the proposed merger between Australian miners BHP Billiton and Rio Tinto, stating that the confederation's arguments have been confirmed.
Commenting on the EC notice, Gordon Moffat, EUROFER director general, said, "We are glad that the EC has found the right approach to the proposed merger. Over the last months we provided the Commission with arguments and information which we see now confirmed. If the Commission finally takes a decision against the merger, the deal will be dead, and competition in the sea-borne market for iron ore maintained."
According to EUROFER, the objection does not mean that the Commission will prohibit the deal and it can still approve it, but only after the issuance of such a statement can the Commission prohibit the merger or clear it subject to conditions.
BHP Billiton will now have two or three weeks to give an answer to the commission. The company could also ask for a hearing to which EUROFER would have to be admitted. The final decision on the merger is likely to be taken on January 15, 2009.