EU regulators file objections to BHP - Rio Tinto merger

European competition regulators have sent a formal complaint to the world's largest miner BHP Billiton listing out anti trust objections to its proposed takeover of the world's second laargest largest mining company, Rio Tinto Group.

BHP has confirmed that it had received the complaint but did not reveal contents of the European Commission's "Statement of Objections" and neither did the regulators.
"The European Commission never comments on ongoing merger investigations," a European Commission spokesman told a daily news briefing.

Without revealing contents of the EU regulator's letter, the BHP Billiton said in a brief statement, ''BHP Billiton confirms that it has received a Statement of Objections from the European Commission in relation to its pre-conditional offer for Rio Tinto.

"BHP Billiton is continuing to work cooperatively with the European Commission and, in accordance with the established merger review process, will be responding in due course to address the issues raised."

After several of its attempts to get Rio Tinto to assent to a friendly merger with itself were rebuffed, BHP Billiton, the world's biggest miner, made a hostile, three-for-one share offer in November 2007 to its smaller rival Rio Tinto, which was rejected by Rio Tinto, saying the deal undervalued the company and later in February this year, BHP Billiton sweetened the offer by enhancing the bid to 3.4 BHP shares for every share of Rio Tinto, valuing the company at $147.4 billion (See: BHP Billiton raises offer for Rio Tinto to $147 billion)  and the bid now awaits approval from the EU competition regulators after getting the nod from regulators in Australia, South Africa and the US.

Since a merged BHP-Rio would create a global force in iron ore, metallurgical coal, aluminum, copper, uranium and other commodities, steel firms throughout the world, including in Europe, China and elsewhere have vehemently opposed the merger and have urged the EU to reject the takeover. (See: China calls for Europe to reject BHP Billiton - Rio Tinto merger)