Ｒｅｑｕｅｓｔ ｔｏ Ｊａｐａｎ Ｆａｉｒ Ｔｒａｄｅ Ｃｏｍｍｉｓｓｉｏｎ ｃｏｎｃｅｒｎｉｎｇ ｔｈｅ ｐｌａｎｎｅd Acquisition of Rio Tinto by BHP Billiton

March 13, 2008
Chairman
Hajime Bada,
The Japan Iron and Steel Federation

BHP Billiton officially announced its proposed acquisition of Rio Tinto on February 6.

In recent years, we have seen a significant decline worldwide in the number of iron ore and metallurgical coal suppliers. At the same time, steel production has grown in China and other nations with emerging economies. The result has been a rapid increase in the cost of these raw materials.

If BHP Billiton is allowed to complete its proposed acquisition of Rio Tinto, we will see a further consolidation in the markets for both iron ore and metallurgical coal. This is particularly true for iron ore, where there is no other significant supplier. Steelmakers would be forced to rely on the world’s top two iron ore suppliers. As a result, competition on the supply side would be effectively limited, producing concerns about the ability of market forces to maintain fair prices. If prices of raw materials for steel go even higher, we would undoubtedly see a severe impact not only on the steel industry, but also on industries that use steel in their products and on consumers.

For these reasons, today The Japan Iron and Steel Federation asks the Japan Fair Trade Commission to conduct an examination of this proposed acquisition. We also ask the commission to take appropriate actions in order to maintain fair competition in the markets for iron ore and metallurgical coal.

 

For more information about this subject：
  The Japan Iron and Steel Federation
  Secretariat Affairs & and Public Relations Group
  General Administration Division
     Tel: 03-3669-4822 Fax: 03-3664-1457
  Domestic Market Research Group
  Market Research & Development Division　
　　　 Tel: 03-3669-4819 Fax: 03-3669-0229