As the process for regulatory approval marches on, it is increasingly becoming apparent there is strong political resistance to the proposed Pilbara iron ore joint venture between BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RTP). The deal is valued at about $127 billion.
Interestingly, it is the improving status of the iron ore market in general that is causing the increased resistance, as the need for a large venture isn't being viewed as in the public interest as it had been earlier on in the process.
"It's a very complicated matter, made more complicated by the change in the marketplace," said Rio CEO Tom Albanese. "The intent was to finish ... by the end of the year; how attainable that is, I don't know."
There are a number of regulatory hurdles the two companies face, but the most challenging are from the Australian Competition & Consumer Commission and the European Commission.
If the deal isn't approved to go forward, a backup plan reportedly is to share infrastructure, which would bring about similar results.
1 comment:
I wonder if Gillards talk to the 2 miners was something like,.... you give us a mining tax and we'll give you your joint venture.... if returned.
Politics is easy to work out :)
Post a Comment