Japan FTC to Probe BHP Billiton’s Plan to Buy Rio Tinto

Tokyo, June 4 (Jiji Press)–Japan’s Fair Trade Commission will start a full antitrust investigation into whether BHP Billiton’s planned acquisition of Rio Tinto, Secretary-General Shoji Ito said Wednesday.

Ito told a press conference that the FTC plans to proceed with information gathering and consider whether the deal raises problems under Japan’s Antimonopoly Law.

Japanese steelmakers depend on BHP Billiton and Rio Tinto, both of which are major British-Australian mining companies, for 60 pct of their iron ore imports.

The FTC is worried that if approved the acquisition could lead to excessive concentration in the iron ore market and price hikes. It has already been collecting information in cooperation with overseas antimonopoly watchdogs.

The FTC decided to step up measures after BHP Billion late last month submitted an application to the European Commission for approval of its planned acquisition of Rio Tinto.END

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