The Japanese steel industry has reiterated its distrust of the proposed BHP Billiton-Rio Tinto JV for the planned integration of their entire production activities in Western Australia, a venture worth more than $100 billion.
According to news sources, officials from the two companies explained the deal in Tokyo last week at a meeting. However, speaking to press members on February 25, Japan Iron and Steel Federation chairman Shoji Muneoka said that his institution is still certain that the plan is just another means of merging for the iron ore giants and thus is unacceptable.
As SteelOrbis previously reported, the Japanese steel industry views the proposed Rio Tinto-BHP Billiton JV "as a move that would restrict competition."
Addressing the European Commission, which announced that the opening of a formal antitrust investigation into the proposed JV on January 25, the Japan Iron and Steel Federation said in a statement issued on the same day that it expected the European executive body to conduct a thorough investigation on the issue and that it would cooperate fully with the proceedings.