Rio Tinto, BHP Billiton axe controversial iron ore merger
Mining giants Rio Tinto and BHP Billiton Monday abandoned a controversial merger of their Australian iron ore operations after anti-competition complaints from regulators and top customers including China.
The Anglo-Australian companies, both among the world's top three miners, said they were disappointed at the collapse of the 116 billion US dollar deal, which was set to save 10 billion US dollars in shared costs.
"The large synergies from combining our West Australian iron ore assets with Rio Tinto's have caused us to persevere in seeking to obtain regulatory approvals," said BHP chief executive Marius Kloppers.
"However, it has become clear that this transaction is unlikely to obtain the necessary approvals to allow the deal to close and as a result both parties have reluctantly agreed to terminate the agreement."
Rio Tinto said the European Commission, Australia, Japan, South Korea and Germany had all refused to approve the deal, which was also fiercely opposed by industrialising China, the world's leading iron ore consumer.
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