BHP clears US regulatory hurdle for Rio deal; doubles iron ore prices

04 July 2008

Mumbai: US anti-trust regulators have given conditional nod to mining giant BHP Billiton's $170 billion bid for Rio Tinto, the second-largest iron mining company, ahead of an expected ruling of an extended review by European regulators.

BHP Billiton is offering 3.4 of its shares for every Rio Tinto share, valuing Rio Tinto at around $170 billion.

BHP Billiton, the world's largest mining company, said the US Department of Justice and the US Federal Trade Commission had ended antitrust waiting period on the proposed deal early.

Under the Hart-Scott-Rodino Act, companies have to undergo a waiting period in order to determine if a takeover violates antitrust laws.

The justice department also concluded a review of the proposal without further action, the company said.

"We are very pleased that we have received notice of early termination of the Hart-Scott-Rodino Act waiting period and completion of the Department of Justice merger review," BHP Billiton's chief commercial officer Alberto Calderon said in a statement.