There are reports that BHP Billiton Ltd
(ASX:BHP) and Rio Tinto Ltd
(ASX:RIO) proposed Western Australian iron ore joint venture could face delays after news that the European Union said its review would focus on seaborne iron ore markets instead of total global production.
On Monday the watchdog confirmed that it had begun its antitrust investigation into the proposed joint venture to merge both company’s operations in the Pilbara of Western Australia.
According to a report in the Australian an EU spokesperson says the commission will in particular examine the effects of the proposed joint venture on the worldwide market for iron ore transported by sea.
The paper says BHP and Rio’s combined production in the Pilbara last year amounted to 36% of the seaborne iron ore market.
BHP and Rio have agreed to market their share of the joint venture separately.
BHP posted a $7.2 billion profit for the 2009 financial year, and Rio Tinto reported earnings of $5.3 billion for 2008.
