Regulators begin review of BHP's proposal to merge Rio Tinto

07 June 2008

Mumbai: Australian Competition and Consumer Commission (ACCC) has commenced its review of the proposed acquisition of Rio Tinto by BHP Billiton after the watchdog received a buy-out plan of about US$170 billion (A$178 billion).

ACCC has received a submission from BHP Billiton about its plan to buy rival Rio Tinto for about A$178 billion, the commission said in a statement sent to the Australian stock exchange.

BHP Billiton, the world's largest mining company, is offering 3.4 shares for every Rio Tinto share, valuing the deal at about US$170 billion (A$178 billion).

BHP Billiton  last week filed its first submission with the European Commission, the European Union's antitrust regulator, on the proposed takeover of London-based Rio Tinto.

The European Commission has between 25 and 35 working days to approve the deal after receiving the submission, or extend it to five months  and  consider the takeover in greater detail.

Melbourne, Australia-based BHP has greater influence over global iron-ore prices. An alliance with Rio would give it a third of the world's traded iron ore and make it the biggest producer of power-station coal and the second-largest producer of aluminum.