Thursday, June 05, 2008

BHP: no need to sell assets in Rio Tinto merger

The CEO of BHP Billiton, Marius Kloppers, told the Melbourne Mining Club today the company sees no need to sell assets to win regulatory approval for its takeover of Rio Tinto.

For the past few weeks I've been speculating that the combined company might have to sell the Resolution Copper project near Superior if the merger went through, based on comments that BHP leaders were making.

[right: credit Rio Tinto]

However, Kloppers did not rule out the possibility that asset sales may still happen. Some of the biggest concerns are from the Chinese who worry over the combined company's concentration and pricing power of iron resources, a commodity of great importance to the booming Chinese industrial economy.

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