Japan FTC Launches Probe on BHP-Rio Deal

Tokyo, Sept. 3 (Jiji Press)--Japan's Fair Trade Commission has
launched a full investigation into BHP Billiton's proposed takeover of rival mining firm Rio Tinto, FTC Secretary-General Takahide Matsuyama said Wednesday.
Matsuyama told a press conference the Japanese antitrust watchdog
is concerned that the deal between the British-Australian mining giants
could hamper fair competition in violation of Japan's antimonopoly law.
The FTC will order BHP to submit documents on the planned
acquisition, Matsuyama said.
The move came after BHP failed to cooperate voluntarily with the
FTC investigation into the mining giants' planned integration.
The FTC is now studying whether the deal will increase the firms'
combined market share for such resources as iron ore and coal to levels high
enough to restrict competition.
The Australian and European authorities will decide whether to
approve the BHP-Rio deal in October and early December, respectively. BHP
may be ordered to sell some assets or to scrap the integration.
The two mining companies account for some 40 pct of global iron ore
exports, while Japan relies on the two firms for about 60 pct of its total
iron ore imports.

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