China Business News cited Mr Shan Shanghua secretary general of the association as saying that China Iron and Steel Association has delivered a report to the Ministry of Commerce, advising the ministry to reject BHP's proposed takeover for Rio

 

As per report, last week, BHP got clearance for its bid from Australia's competition regulator, marking the material progress for the ore miner to get the deal approved.

 

Mr Luo Bingsheng vice chairman of CISA said the merger of two iron ore giants, which controlled 40% of China's iron ore imports, would have a negative impact on consumers and make it easier to control the market and prices.

 

Mr Shan said "We are firm in our stance, and the merger is not so unacceptable as most expect. Iron ore price will not soar up on their merger, since the price is finally ruled by market fundamentals. If demand weakens, iron ore price will fall. He said that domestic mills need not quail at the possible merger. Currently, home made iron ore has taken up 50% of domestic consumption, and the rate will run up further. He added that global iron ore price will go back to a rational level from the current peak in the coming days.”

 

The merger is waiting for the approval from the European Commission, which has set a January 15th deadline for its in depth review of the deal.

 

 

 

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