Press Release: Mergers: Commission opens in-depth investigation into BHP Billiton’s proposed acquisition of Rio Tinto

The European Commission opened a detailed investigation under the EU Merger Regulation into the proposed acquisition of Rio Tinto by BHP Billiton. Both companies are British-Australian dual-listed companies that mine and market a range of commodities such as iron ore, coal, uranium, aluminium, mineral sands, copper and diamonds, as well as various other base metals and industrial minerals. The Commission's initial market investigation indicated that the proposed takeover raises serious doubts as to its compatibility with the Single Market. Concerns arose in particular as regards the markets for iron ore, coal, uranium and aluminium and mineral sands, because the proposed takeover could result in higher prices and reduced choice for these companies' customers. However, a decision to open an in-depth inquiry does not prejudge the final result of the investigation. The Commission now has 90 working days, until 11 November 2008, to take a final decision on whether the concentration would significantly impede effective competition within the European Economic Area (EEA) or a substantial part of it.