Economic Observer citing an unnamed source with China Iron & Steel Association reported that BHP Billiton Ltd's takeover bid for Rio Tinto, which is under investigation by the anti monopoly body under China's Ministry of Commerce, bears many uncertainties.

Some industry analysts said China's anti monopoly law may not effectively block combination of two foreign enterprises, holding the anti monopoly proposal is formalistic rather than of true value. On the case, a third choice for China to finalize apart from approval and ban is conditional approval.

He said "We surely have jurisdiction, an expert team member disagreed according to second article of the law when a merger between two foreign companies could affect domestic market, this law is applicable it's more than a monopolistic competition, but also involves national industry policy, economic development pillar, it's comprehensive."

Earlier, EU and Australia declared to extend the review for the hostile merger, while China Iron & Steel Association clearly stated opposition with the Mofcom and have more than once repeated its rejection stance. The Chinese steelmakers are in line with the association, clearly against the merger.

(Source: Economic Observer)