SA watchdog to interrogate effect of BHP-Rio tie up on iron-ore, aluminium

South Africa’s competition overseer will be “looking seriously” at how BHP Billiton’s proposed takeover of Rio Tinto would affect the iron-ore, aluminium and coking coal markets, a senior official said on Friday. Manager of the Competition Commission’s mergers and acquisitions department, Tembinkosi Bonakele, told Mining Weekly Online that the watchdog was targeting making a recommendation to the Tribunal by September 11. This was after BHP Billiton and the Competition Commission reached an amicable solution over issues related to its application for the approval of its proposed Rio Tinto acquisition, with the miner agreeing to hand over certain documents. Bonakele said that the Commission had the option of extending the September 11 date by 15 days, but that it was “chasing it down”. Thereafter, the Tribunal should make a decision within three weeks, provided the Commission did not find significant problems. If it did, there would be a full hearing, and this would prolong a decision. “The parties have resolved the issue amicably and BHP Billiton wishes to again reiterate its intention to continue to work with the Competition Commission in a cooperative manner,” a spokesperson for the world’s biggest resources company, Bronwyn Wilkinson, said on Friday. The Competition Commission said that BHP Billiton had agreed to hand over the documents in question, “subject to confidentiality claims”. The Competition Tribunal was supposed to have held a hearing for BHP Billiton regarding the papers on Friday, but these had now been cancelled. Wilkinson declined to say what the nature of the documents was. “BHP Billiton doesn’t comment on legal or regulatory process,” she stated in an email. “What I can confirm is that in relation to BHP Billiton’s offer for Rio Tinto, discussions were held yesterday between the South African Competition Commission and BHP Billiton, in relation to certain documentation requested by the Competition Commission in connection with the merger analysis. “… BHP Billiton wishes to again reiterate its intention to continue to work with the Competition Commission in a cooperative manner with a view to assisting the South African Competition Commission to finalise its investigation into the proposed transaction as soon as possible.” BHP Billiton launched its formal all-share bid for smaller rival Rio Tinto in February, which was rebuffed. The company already has US regulatory approval, and is waiting for sanction from South Africa, Australian, Chinese, and other authorities. Source: www.miningweekly