ACCC delays new ruling on BHP-Rio Tinto merger operation in Pilbara
The Australian Competition and Consumer Commission (ACCC) said on Wednesday that its anticipated findings on the proposed merger of the country's two giant mining companies would be further delayed, as it announced that the suspension was made "at the request of the joint venture parties to allow them to make additional submissions to the ACCC."
ACCC was supposed to release its final rulings on the proposed iron ore operations merger of Rio Tinto Ltd and BHP Billiton Ltd in Western Australia by July 22, as announced in late June by Chairman Graeme Samuel.
Instead, the competition watchdog said on its website that the delay has been decided to accommodate more submissions from all concerned parties as it added that "a new proposed date for the announcement of the ACCC's findings will be advised in due course."
ACCC has been tasked to investigate the deal in order to determine if it would violate the Trade Practice Act as more parties expressed oppositions to the mega deal that would see the marriage of both BHP's and Rio Tinto's iron ore operations in the Pilbara region.
Apart from BlueScope Ltd and Chinese steel makers, European regulators are seen as the major hurdle for the proposed tie up with all opposing parties fearing for an industry monopoly deemed unhealthy for encouraged competition.
BHP and Rio Tinto sealed a binding agreement in December last year to merge their operation in Pilbara, arguing that such arrangements could potentially save up to $US10 billion or $A11.82 billion each year for both mining giants.