The Australian reported that the Australian Competition and Consumer Commission has suspended its timetable for reviewing a proposed iron ore JV between BHP Billiton and Rio Tinto to give the parties time to respond to an earlier request for information.

ACCC announced on its website that the schedule had been suspended to allow the proposed joint venture parties additional time to respond to the ACCC's information request of March 30th 2010."

It is not clear whether the extension will disrupt the ACCC's plan to announce its findings on the proposed alliance by May 27th 2010, a date still listed on the watchdog's website.

The ACCC had originally planned to announce findings on February 24th 2010 but this was delayed to April 28th 2010 and then May 27th 2010.

Regulatory approval by the European Commission is considered the biggest barrier to the JV, but the ACCC has taken a tougher line than expected in its statements to date, indicating it plans a thorough study of the deal.

Last week, The Australian revealed that BlueScope, one of the most fervent critics of the deal, had failed to meet the deadline for delivery of a formal response to the ACCC investigation. It is understood Australia's biggest steelmaker has opted instead to continue discussions with the regulator and the proponents of the deal over its concerns about the implications of the merger.

It is claimed that some within Rio are hoping competition regulators will scuttle the deal, which has become increasingly favorable for BHP thanks to a rise in iron ore prices. Publicly, Rio remains committed to a deal that the two miners say will save USD 10 billion. And some market observers say Rio chief executive Tom Albanese can't afford to admit another misstep.

(Sourced from www.theaustralian.com.au)