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BHP starts China regulatory clearance process for Rio merger
 
4th July 2008
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BHP Billiton has begun the filing process to get clearance for its proposed merger with rival Rio Tinto with China’s Ministry of Commerce (Mofcom), it said on Friday.

The resources multinational has already filed for clearance in the European Union, the US, Australia, Canada and South Africa, spokesperson Illtud Harri told Mining Weekly Online, adding that it would file in Taiwan, Korea and Japan at a later date.

Harri said that BHP Billiton was in “ongoing discussions” with Mofcom.

The company announced on Thursday that the US Department of Justice (DoJ) and the Federal Trade Commission had granted it an early termination of the Hart-Scott-Rodino waiting period for its proposed acquisition of Rio Tinto.

“The early termination by the DOJ represents an important milestone in the progress of our merger clearances, which are preconditions of our offer for Rio Tinto,” Harri stated, in reply to emailed questions.

BHP Billiton first announced its intentions to bid for Rio Tinto in November last year, in an all-share deal valued at some $170-billion.

The smaller company was quick to snub the proposal, saying that it undervalued its growth prospects, particularly for its iron-ore business.

Edited by: Mariaan Webb

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