On November 19, Japan Iron and Steel Federation chairman Hajime Bada declared that he was strictly opposed to any possible merger between the world's two major iron ore producers, BHP Billiton and Rio Tinto, stating that such a giant merger would enable the two companies to claim control of over 40 percent of the world's iron ore seaborne trade and of 60 percent of Japanese iron ore imports.
Commenting on the possible merger, Mr. Bada said, "We are worried that such a merger would impede a healthy market price mechanism," adding that he intended to express his views on the issue in a meeting to be held with BHP Billiton.
Moreover, the China Iron and Steel Association (CISA) has revealed that the proposed $350 billion merger has also aroused concerns in its country, as China is the world's largest iron ore importer, with 38 percent of its purchases sourced in Australia.
As previously reported by SteelOrbis, Australia-based iron ore producer BHP Billiton recently made an offer to take over its Anglo-Australian rival Rio Tinto; however, Rio Tinto rejected the proposal saying that the offer undervalued the company and its prospects.