Australia`s competition regulator on Friday identified iron-ore as a potential major concern in evaluating mining giant BHP Billiton`s US$128 billion bid for rival Rio Tinto and said it would make a final ruling on the hostile takeover by October 1.
The Australian Competition and Consumer Commission (ACCC) devoted most of its nine-page "statement of issues" to the proposed deal`s likely impact on the iron ore trade and, in particular, on Australian steel-makers.
Rio Tinto and BHPB are the world`s second and third largest iron-ore producers, respectively, behind Brazil`s Vale. But the ACCC saw no major competition issues surrounding trade in copper, gold, uranium, bauxite and alumina.
"Proceedings have been filed against:
* Australia's two largest manufacturers of electrical cable, Olex Australia Pty Ltd (Olex) and Prysmian Power Cables & Systems Australia Pty Ltd (Prysmian),
* the electrical wholesaling businesses L&H (which is operated by Lawrence & Hanson Group Pty Ltd) and Rexel (which is operated by Rexel Electrical Supplies Pty Ltd and Australian Regional Wholesalers Pty Ltd),
* six senior executives from these manufacturing and wholesaling companies, and
* an industry association, Electrical Wholesalers Association of Australia Limited (EWAA)."