After, European Commission has issued Statement of Objections to BHP Billiton concerning its bid for Rio Tinto, EUROFER said that it’s arguments have been confirmed

Mr Gordon Moffat director general of EUROFER said that “We are glad that the EC has found the right approach to the proposed merger. Over the last months we provided the Commission with arguments and information which we see now confirmed. If the Commission finally takes a decision against the merger, the deal will be dead, and competition in the sea-borne market for iron ore maintained.”

The European Commission has issued a “Statement of Objections” against the proposed merger of mining giants BHP and Rio Tinto. The statement summarizes the serious objections of the Commission as to the compatibility of such a merger with the common market. The Statement does not mean that the Commission will prohibit the deal (it still can approve it), but only after the issuance of such a statement can the Commission prohibit the merger or clear it subject to conditions.

BHP will now have two or three weeks time for an answer to the Commission. The company could also ask for a hearing to which EUROFER would have to be admitted. The final decision on the merger will probably be taken on 15 January 2009.

Represented by EUROFER, the European steel industry is the world leader in its sector with a turnover of EUR 140 billion and direct employment of 370 thousand people, producing 200 million tonnes of steel per year.