The Financial Times cited Mr Marius Kloppers CEO of BHP Billiton as saying that he is confident that its USD 180 billion bid for Rio Tinto would be passed by the European regulator.

But Mr Kloppers did not say whether Australian iron ore assets would need to be sold to win clearance.

BHP submitted its proposed hostile takeover of Rio to the European Commission last week, amid calls from the steel industry for the deal to be blocked on competition grounds. Steelmakers in Asia and Europe said that a successful takeover would give BHP too much control of the seaborne iron ore trade, creating a duopoly with Brazil’s Vale.