The steel industry in Europe has voiced its concern over mining giants BHP Billiton Ltd
(ASX:BHP) and Rio Tinto Ltd
(ASX:RIO) iron ore joint venture in Western Australia and wants regulators to reject the deal.
Over the weekend BHP and Rio signed binding agreements covering all aspects of the joint venture accounting for all current and future iron ore assets and liabilities in W.A.
According to Reuters Eurofer, the key lobbying group for European steel makers, has voiced its concern to the European Commission that the joint venture will increase the pricing power of the combined company, which it says is unacceptable in competition terms.
BHP has previously failed at a takeover of Rio after objections from the European Commission.
To try and ease concerns and get the deal over the line the two miners have agreed as to keep their marketing separate.
BHP earned $7.2 billion in fiscal 2009, and Rio Tinto recorded profit after tax of $5.3 billion for calendar 2008.
