Australian iron ore behemoths BHP Billiton and Rio Tinto have expressed their disappointment regarding the German Federal Cartel Office's October 15 statement revealing its current intention is to prohibit the companies' proposed iron ore production joint venture in Western Australia.
The German regulatory process continues and the parties are expecting to receive a formal notification next week.
According to a joint statement, the two Australian miners continue to believe that the joint venture is pro-competitive and will increase the supply of iron ore. However, both BHP Billiton and Rio Tinto acknowledge the concerns expressed by some regulators and the obstacles to achieving clearance for the joint venture.
No decisions about next steps have been taken at this stage while regulatory discussions
continue.
As SteelOrbis previously reported, the BHP Billiton-Rio Tinto JV, proposed in December 2009, looks to achieve integration of the companies' entire production activities in Western Australia, a venture worth US$116 billion.
Japan Fair Trade Commission, Korea Fair Trade Commission, the European Commission and the Australian Competition and Consumer Commission are among the other institutions investigating the merger.