Sunday, January 31, 2010

EU steel makers oppose BHP-Rio iron ore deal

Mr. Kevin Rudd,
Prime Minister of Australia
Dear Mr. Rudd,
We refer to the reports below for your information.
Since you ignored our email below, we will upload the various reports onto our website for our global readers
to judge whether our concern that important raw materials like iron ores should never be
monopolised by countries like Australia and Brazil who are well end owed with them, to the
detriment of the world economy as a whole.
We strongly believe that a sharing of these natural resources world-wide in accordance with time-tested economic principles
aimed at maximising production and the better utilization of the world's natural resources would bring about greater justice
to humankind.
Fair and equitable distribution of natural resources to nations which are not well-endowed with them would bring about a
world that is a better place to live in for all.
Australia - the lucky country needs to act responsibly.
Yours respectfully,
Eddie Hwang
EU steel makers oppose BHP-Rio iron ore deal
EUROPEAN steel makers have called on European Union antitrust regulators to probe BHP Billiton and Rio Tinto's iron
ore jont venture in WA.
The European steel industry federation Eurofer - whose members include the world's biggest steel makers ArcelorMittal SA,
ThyssenKrupp AG and Corus Group - said the joint venture isn't "much different from the effects which would have
resulted" from BHP's takeover bid for Rio last year.
"The European steel industry continues to believe that a merger of iron ore assets of this type in a world market already
dominated by just three suppliers would not be in the interests of the steel industry, European consumers or the European
economy," it said.
EU opposition to BHP's hostile $US68 billion ($A86.04 billion) bid for rival Rio forced it to abandon the takeover attempt
last year.
The European Commission saw competition problems with the deal that they said could hike prices and reduce choice for
European mineral and metals customers.
Rio also complained that the bid undervalued it.
The two miners are now planning a joint production project to pool all their iron ore assets in Western Australia, a move
that could save them billions as iron ore prices slide.
Australia's BHP will also pay Rio $US5.8 billion ($A7.34 billion) to equalise its contribution to the joint venture.
The deal rescues Rio after it scrapped a $US19.5 billion ($A24.67 billion) deal with China's Chinalco over Australian fears
that the deal would give a foreign company a strategic stake in one of the country's biggest industries.
Rio's balance sheet is weighed down by $US38.7 billion ($A48.97 billion) in debt.
Combining BHP and Rio would allow them to

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