Chinese steelmakers, government plan counter bid for BHP's $134 billion offer for Rio Tinto

Mumbai: China, the largest importer of iron ore, jointly with its steelmakers is studying bid for Rio Tinto Group, countering BHP Billiton''s $134 billion offer.

"It''s an issue being discussed by top-level officials,'''' reports quoting Chen Hanyu, a director at the resources office of Shougang Corporation, the nation''s ninth-largest steelmaker, said.

The China Iron and Steel Association has also discussed the issue, Qi Xiangdong, the group''s vice chairman said.

Some of the biggest steelmakers in China like Baosteel Group Corp as also its domestic rivals may team up with the central government for the bid, said Shougang''s Chen.

China wants to block a BHP deal with London-based Rio as it would give the world''s biggest mining company control of almost half the Asian market for iron ore.

The bid, which would be China''s biggest overseas takeover move, if succeeds, could help China secure supply of the raw material needed to support the fastest growth of its economy. A deal, would, however, need Australian government approval.