Right Pulse

From the BBC about the potential merger between BHP and Rio Tinto:

A tie-up between BHP and Rio would create a firm with a third of the world’s iron-ore market, raising fears that it would be too powerful.

The EU listed its concerns but said BHP would be able respond, adding the findings had not been pre-judged.

Ah ha though, where there’s a will there’s a way to stop the free market:

US regulators have approved the deal but, like the EU, Australia’s regulators are also sceptical.

Why on earth Australian regulators would be opposed to such a move is a mystery. It would make BHP one of the top 5 corporations in the world by market value - think of the tax revenue from the strengthend market position such a merger would result in. Anyway, this rather interesting note from Forbes magazine:

The commission said its preliminary investigation showed that the proposed takeover raises serious doubts as to its compatibility with the single market. The EU executive has particular concerns over the markets for iron ore, coal, uranium and aluminium and mineral sands, because the proposed takeover could result in higher prices and reduced choice for these companies’ customers.

Seems like the EU has already made up its mind, but they have a get out clause:

The commission said, however, that its decision to open an in-depth inquiry does not prejudge the final result of the investigation.

Some how I find that slightly unbelievable.