Daily Metal Market News & Metal Prices
 
Daily Metal Prices & Market News
Friday 03rd of September 2010
Monday, May 5, 2008

BHP makes slow progress in Rio takeover approvals

BHP makes slow progress in Rio takeover approvals

Almost three months after making its takeover bid for Rio Tinto official, BHP Billiton has still not lodged an application for approval to the European Commission.

The miner, which says it is still in discussion with EU competition officials, will also need clearance for the takeover from regulators in Australia, the US, South Africa and Canada.

The merger of the world’s two largest mining companies (in terms of market capitalisation) will be a lengthy business. If successful, it will be the second largest takeover ever achieved, creating a mining group valued at around $380 billion.

However, the move will be facing opposition from steel producers in China, Japan, South Korea and Europe.

These and other countries (some in the EU) are concerned about the supply of iron ore because a combined BHP/Rio would control around one-third of seaborne trade in the mineral.

The group would also be a major force in other commodities, notably copper and aluminium.

Rio Tinto rejected the all-share offer made by BHP in early February (3.4 BHP shares for each Rio share) and the relationship between the companies remains hostile, with recent suggestions from BHP’s chairman, Don Argus, that if acquired, Rio would be broken up.

BHP’s main argument for the takeover is that it would create value for both companies’ shareholders by achieving $3.7 billion in synergy benefits after seven years. Rio has continued to maintain that BHP is undervaluing its business.

 

Add to Bookmarks:

ADD TO NETSCAPE     ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL


Related posts to: BHP makes slow progress in Rio takeover approvals

Lihir on track for 2007 target ...

Pioneer Nickel reports strong gold progress ...

Closer of offer for Midwest ...

Dutch Gold adds Geologist, updates operations ...

Chinalco makes further acquisition ...

Latest Metals News:

Latest News  US pending home sales data helps copper prices

Latest News  Positive data chases gold prices lower

Latest News  Gold gains on search for safetey ahead of economic data

Latest News  Gold gains as US dollar weakens

Latest News  Gold prices fall on US jobs news

Latest News  US durable goods orders, new home sales drive metals price moves

Latest News  Gold gains, copper drops on US home sales data

Latest News  Copper prices fall on economic, demand concerns

Latest News  US unemployment numbers hurt copper prices

Latest News  Copper prices gain on more inventory declines


Previous: «
Next: »

Visited 2172 times, 1 so far today

Gold ($/troy ounce):

Silver ($/troy ounce):

Platinum ($/troy ounce):