Corus moves EC against Rio bid as ArcelorMittal eyes stake

30 June 2008

Mumbai: Corus Steel, the world's sixth-largest steelmaker, has moved the European Commission against BHP Billiton's $208 billion bid to take over mining major Rio Tinto, even as reports said top producer AcelorMittal is planning to enter the race for Rio Tinto.

''Corus has stepped up its campaign against BHP Billiton's attempt to take over mining rival Rio Tinto by complaining to the European Commission about the deal," The Sunday Times reported.

The UK steelmaker, which was consulted by the EC about BHP-Rio, gave "very, very strong negative sentiments on further concentration in the iron ore industry," the newspaper quoted Corus CEO Philippe Varin as saying.

A Rio-BHP combine could control about 36 per cent of the world's seaborne trade in iron ore.

The Financial Times, meanwhile, quoted people close to the development as saying that Luxemburg-based ArcelorMittal was looking to enter the takeover battle for Rio Tinto.

Lakshmi Mittal, chairman and top shareholder of ArcelorMittal, is keen to secure larger supplies of iron ore.