Nippon Keidanren said that BHP Billiton Limited's USD 118.7 billion bid to buy Rio Tinto Group could create a grave problem for the global economy.

Mr Fujio Mitarai chairman of Nippon Keidanren said that monopolization of iron ore and other commodities may take place as a result of the acquisition. He added that "I strongly support the Fair Trade Commission's investigation.''

Japan's FTC has asked BHP to submit its plans for taking over Rio. The FTC expects to conclude the investigation in December 2008, in line with the completion of a review by European Union regulators

The Japan Iron & Steel Federation in March 2008 asked its government's watchdog to examine Melbourne based BHP's bid. The group's chairman Hajime Bada said the merger would produce concerns about the ability of the market to maintain fair prices for steelmaking materials.

Combining BHP with Rio would create a group that has 38% of the market in the seaborne iron ore trade.