BHP's Rio takeover faces Japanese scrutiny

BHP Billiton's proposed takeover of mining rival Rio Tinto is facing more scrutiny by regulators, this time in Japan. Japan's Fair Trade Commission is worried the deal would give the combined company too much pricing power in the supply of iron ore and coal. It has been taking submissions from Japanese companies, but is not satisfied with responses it has received from BHP. It will use its anti-monopoly power to require BHP Billiton to submit its takeover plan for investigation, the first time that power has been used against a foreign company. The Japanese regulator is reportedly keen to finish its review before European regulators complete their investigation of the takeover. Japanese industry buys 60 per cent of its iron ore and 30 per cent of its coal from the two companies. －－By north Asia correspondent Shane