Market analysts said that BHP Billiton's proposed takeover of Rio Tinto could lead to increased competition in the price of iron ore. Analysts said that they are surprised by the decision considering the companies' stranglehold on the iron ore market.

Mr Tim Weir said that the merger could affect competition in relation to the pricing of iron ore. He said that "It will put BHP in a particularly strong position. It may well lead to increased price competition."

BHP overcame the first hurdle in its bid to take over Rio Tinto after the Australian Competition and Consumer Commission gave the proposed merger its approval. The ACCC found merging the world's second and third largest iron ore producers was unlikely to substantially lessen competition in the industry.