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Proposed Rio, BHP tie-up has ‘strong monopolistic color’

Proposed Rio, BHP tie-up has ‘strong monopolistic color'(Xinhua) China Daily  2009-06-16 ANSHAN – An official with the Ministry of Industry and Information Technology (MIIT) said Tuesday that the proposed alliance of Rio Tinto and BHP Billiton had a “strong monopolistic color” and Chinese firms would watch it closely and find ways to cope with it……………………………

On Monday, spokesman of the Ministry of Commerce Yao Jian said if the revenue of the joint venture reached “a certain amount,” China’s anti-monopoly law would apply.

That law requires a company to get government approval before consolidation if its global revenue exceeds 10 billion yuan (US$1.47 billion) and its revenue in China exceeds 2 billion yuan.

An anti-monopoly review is also necessary if two or more parties in the company had more than 400 million yuan of revenue in China in the previous fiscal year.

In the year ended 30 June, BHP Billiton’s revenue in China was US$11.7 billion, while that for Rio Tinto was US$10.8 billion, according to the companies’ websites.

It was unclear what actions China would take if the case was determined to be covered by the Chinese anti-monopoly law.

Proposed Rio, BHP tie-up has ‘strong monopolistic color’

June 17, 2009 - Posted by Christina Macpherson | Uncategorized