A proposed merger between mining giants BHP Billiton and Rio Tinto would create a "virtual monopoly," a steelmakers' association warned Monday, urging antitrust watchdogs to block the deal.
The Brussels-based International Iron and Steel Institute (IISI) said that the two companies already produce 70 percent of global iron ore along with Brazilian rival CVRD. "Any further consolidation between the big three would create a virtual monopoly in the business," IISI Secretary General Ian Christmas said in a statement.
"Not only will the steel industry strongly oppose the potential merger of BHP Billiton and Rio Tinto, but it is vital that the competition authorities in the EU, USA, China, Australia and Japan also recognise the threat that this merger poses to the interests of steel consumers and the general public," he added. "This merger is not in the public interest and should not be allowed to proceed."
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