Both Germany and Japan have signaled they're going to oppose the proposed iron ore joint venture between BHP (NYSE:BHP) and Rio Tinto (NYSE:RIO), citing competition concerns.
It is opposed by steelmakers in both countries, who have pressured regulators to oppose the deal.
If the companies are allowed to go ahead with the deal it would save them a minimum of $10 billion in costs from combining railroads, ports and mines in the Western Australia region of Pilbara.
The companies said in a joint statement: “The parties continue to believe that the joint venture is pro-competitive and will increase the supply of iron ore. However, both BHP Billiton and Rio Tinto acknowledge the concerns expressed by some regulators and the obstacles to achieving clearance for the joint venture.”
Rio and BHP can both respond to the objections before a final decision is made.
They said they haven't decided the next steps to take concerning the venture at this time.
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