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Iron Investing News reports BHP Billiton, in its attempt to acquire Rio Tinto Group in a hostile takeover bid, experienced another delay. European Union regulators are seen by many as the largest roadblock to BHP’s success in acquiring Rio. The Commission’s investigation began in July amidst concerns that the deal would result in higher prices …
Iron Investing News reports BHP Billiton, in its attempt to acquire Rio Tinto Group in a hostile takeover bid, experienced another delay.
European Union regulators are seen by many as the largest roadblock to BHP’s success in acquiring Rio. The Commission’s investigation began in July amidst concerns that the deal would result in higher prices and cut options for European buyers of metals and minerals. “Concerns arise in particular as regards the markets for iron ore, coal, uranium and aluminum and mineral sands, because the proposed takeover could result in higher prices and reduced choice for these companies’ customers,” said the Commission.
Michael Rawlinson, Head of mining, resources and energy at Liberum Capital Ltd says:
“The EU has obviously asked for information that can’t be provided quickly and the fact that they are failing to understand BHP’s arguments at this stage in the process does not bode well.”
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