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M&A ACTIVITY
BHP asks SA competition authorities to set aside summons over Rio bid
 
25th August 2008
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Diversified resources firm BHP Billiton this week would present an urgent application to South Africa’s Competition Tribunal to set aside a summons regarding information the watchdog wants for its evaluation of the miner’s proposed acquisition of Rio Tinto.

The Tribunal said in a statement that BHP Billiton was objecting to a summons that the Competition Commission issued one of its employees to provide certain information to the commission.

“The commission claims the information required is necessary to evaluate the BHP Billiton and Rio Tinto merger,” it stated.

“According to BHP Billiton, the information is irrelevant for the purposes of the investigation being undertaken by the Competition Commission.”

This came after the Australian Competition & Consumer Commission (ACCC) on Friday voiced concern over the proposed merger, and, in particular, the effects it may have on the global iron-ore market.

The ACCC said it would receive submissions regarding the proposed merger until September 5, with the intention to announce its final view on October 1.

BHP Billiton, the world’s biggest resources company, formally launched its all-share takeover bid for rival Rio Tinto in February, which the smaller company snubbed as not reflecting its true value and future prospects.

So far, BHP Billiton has received US regulatory approval, and has begun the filing process to get clearance with China’s Ministry of Commerce.

The resources multinational had already filed for clearance in the European Union, the US, Canada and South Africa, and would file in Taiwan, Korea and Japan at a later date.

Rio Tinto will present its interim results on Tuesday.

South Africa’s Competition Tribunal investigates mergers and acquisitions and makes recommendations to the Tribunal, which makes the final decision.


Edited by: Mariaan Webb

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