BHP Billiton and Rio Tinto iron ore joint venture
BHP Billiton (ASE:BHP) and Rio Tinto (ASE:RIO) had their timeline extended by the Australian Competition and Consumer Commission in order to give the two companies more time to respond to concerns over the joint venture between the two companies, which has brought concerns over a potential monopoly.
The joint venture would involve iron ore production, which is in high demand at this time, and should be for the foreseeable future.
Even with the potential regulatory hurdles the companies face, there are other challenges, especially the possibility of shareholders of Rio Tinto voting the deal down because it seems to favor BHP Billiton.
Even if those two barriers are crossed, it will be extremely difficult to get past the European Commission, which is considered the largest challenge the deal has before it.
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