BHP Billiton Limited said that the European Union's antitrust review of its USD 74 billion hostile bid for Rio Tinto Group has become more important after commodity markets slumped.

Mr Alberto Calderon CCO of BHPB said that "We expect a manageable solution from the EU but that becomes more important than ever because you have less room to maneuver In these markets your margins are less which means you have to look at things very carefully.''

He added that "There have been inventory buildups and stock adjustments there due to slowing economic growth, so the 4th quarter will be crucial to determine if the 3rd quarter was an exception."

Mr Nick Hatch an analyst at ING Bank NV said that BHP may have to sell iron-ore or coal assets to get approval for the offer. Global financial turmoil has scuppered other mining industry transactions, including Xstrata Plc's proposed GBP 5 billion takeover of platinum miner Lonmin Plc.

It may be noted that Rio had rejected BHP's sweetened offer of 3.4 shares for every one of Rio's in February 2008, saying it significantly undervalued the company. Rio's shares in London have plunged by a third in the past month amid concern the global economic growth will falter. BHP has dropped 17%.

Meanwhile, European Commission began a full inquiry into BHP's bid, saying it had serious doubts over a combination that would control more than a third of the world's iron ore exports.