ACCC Delays Review on BHP Billiton/Rio Tinto Iron Ore JV

Australian Competition and Consumer Commission postpones announcement of examination result on proposed joint venture of BHP Billiton and Rio Tinto to produce iron ore in Western Australia, announced on Monday. The agency originally planned to announce the result on May 27. ACCC reviews the proposal requiring further information. However, ACCC didn’t reveal the date. The authorities in Japan and China have not yet started the formal examination due to the lack of data while the evaluation by European Commission is expected to delay.

European Commission launched the examination in January. However, the deadline for the result is expected to extend when the commission studies the impact on the market and require further data of BHP Billiton and Rio Tinto.

The examination by Japan Fair Trade Commission is estimated to take about 120 days and the authority in China and South Korea launched the review. However, they are still working and could take more time to get the results.

The steel industries in Japan, Europe and China oppose the joint venture when further concentration in the suppliers could break market mechanism in world iron ore market.