BHP may face delay in EU ruling on Rio bid

Source: Reuters

Date :20/11/2008 00:17:21

A January 15 deadline for a European Union ruling on mining giant BHP Billiton Ltd/Plc's bid for rival Rio Tinto Ltd/Plc could slip by up to three weeks after BHP missed a deadline to offer asset divestments, the Australian Financial Review paper reported on Thursday.

The paper, in an unsourced report, said BHP was arguing it may not be required to make any divestments though the market expects significant asset sales would be required, putting the deadline back to February 5.

BHP missed a November 17 deadline to offer early asset sales and stay on track for the mid-January decision, the paper said.

" now has until December 1 for a final deadline to put forward remedies to the European Competition Commission's statement of objections, or risk the regulator opposing the merger completely," the Review reported.

Earlier this month, BHP received a document from the European regulator detailing anti-trust hurdles to its bid for Rio.

Details of the EU's objections remain confidential, though analysts have said the main issue revolves around iron ore, since Rio and BHP are the world's second and third biggest producers.

In a separate report on Thursday, the Sydney Morning Herald paper said the EU's objections include concerns a combined group would have the power to forge a new global iron ore pricing system, whether its customers like it or not.

(Reporting by James Thornhill, editing by Wayne Cole)

SYDNEY (Reuters)