EU halts investigations into BHP’s bid for Rio

The European Commission has announced that it has ceased its investigations into BHP Billiton’s proposed takeover of Rio Tinto.

Matters have come to a halt because the Commission is waiting for more information from BHP before it can proceed.

A request for the information was made on 13th August and BHP is apparently still working on its response.

Both the Commission and Australian authorities have expressed concerns over the effect a merger of the companies could have on the iron ore market and a delay at this stage could mean that regulators will not conclude their investigations until the end of the year.

BHP remains confident that its offer for Rio Tinto will receive regulatory approval, despite the impact the proposed acquisition could have on not only iron ore but also uranium, coal and aluminium markets.

Meanwhile, Chinese aluminium and copper producer, Chinalco, has indicated that it may be interested in increasing its stake in Rio but continues to refute suggestions that it is planning a counter bid.