Germany likely to block BHP-RIO JV

Germany likely to block BHP-RIO JV

The iron ore joint venture between BHP Billiton (ASX:BHP) and Rio Tinto (ASX:RIO) may be killed before it gets off the ground, with German regulators threatening to block the project.

Germany's Federal Cartel Office (FCO) has revealed it currently intends to prohibit the proposed ore production joint venture in Western Australia.

In a joint statement, RIO Tinto and BHP Billiton said they continue to believe that the JV is pro-competitive. “However, both... acknowledge the concerns expressed by some regulators and the obstacles to achieving clearance for the JV."

The final FCO decision is expected next week. RIO shares are today trading 1.36% higher at $83.200, while BHP shares are down 0.02% to $41.650.

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Tags BHP Billitonrio tintocompetitionjoint ventureASX:RIOASX:BHP

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