Friday, August 15, 2008

Australian Two Mining Giant Merger Will be Accepted at China's Anti-monopoly Review

Australian Two Mining Giant Merger BHP Billiton and RioTinto have submitted the applications of merger to the Chinese Ministry of Commerce for anti-monopoly report. China Steel Industry Association which be on behalf of the Chinese iron and steel sector position have said: China firmly opposes.

Australian mining giant BHP Billiton on the acquisition of another 140 billion U.S. dollars in contract to the mine to the anti-monopoly for the report submitted last month to the Chinese Ministry of Commerce, and China's related departments to accept the antitrust review.

The executive vice president of China Steel Industry Association Luo Bingsheng said last Friday, has been to the Chinese Ministry of Commerce expressed the merger of the position, which is opposed.

BHP Billiton has acquired in the United States, the European Union, China and other applications. Because China is the one of the largest exporting country and therefore must go through antitrust review of China's consent.

BHP Billiton, RioTinto and CVRD three companies control more than 72 percent of the world's iron ore resources, the merger will enable the industry's monopoly stronger.


China's first anti-monopoly law, which was proposed 15 years ago and was not passed until last year, takes effect on August 1.

The law, seen by some as the "constitution for the market economy" because of its importance in promoting an environment of fair competition, is regarded by investors and legal experts as a landmark law in China's transition to market economy and further opening up.

Foreign investors should take the law as a positive sign for their future investment in China, said Li Shuguang, a professor at China University of Politics and Law, who participated in drafting the law.

Originally Posted:
Author: Angulo Fu