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|JISF Opposes To BHPB's Proposed Acquisition Of Rio Tinto|
|= Chairman Bada expresses concerns about possible impairment of sound price mechanism =|
Hajime Bada, Chairman of the Japan Iron and Steel Federation (JISF), expressed Nov. 19 his remarks on BHP Billiton's current moves to acquire Rio Tinto, stating, "At present an oligopoly of iron ore and coal is well advanced. A merger of the two resources giants would further accelerate oligopolies of not only these materials but also copper, aluminium, uranium, etc," and further said, "As JISF we oppose to BHP Billiton's proposed acquisition of Rio Tinto."|
Mr. Bada warned that a consolidation of these two companies would come to control 40% of global seaborne trade throughputs in terms of both iron ore and hard coking coal. He stressed that sound price mechanism would be impaired for Japan that depends 60% of imported iron ore on these two Australian resource suppliers.
He also said, "From the viewpoint of equal footing, current Japanese law or Antimonopoly Act is insufficient in case Japanese companies may incur losses and damage, namely they are not in a position to take any effective lawful action, should there be any highly detrimental impacts on them. We might possibly request relevant administrations in the Japanese government to complete relevant law not solely in the interest of the nation but for fair trade.
He furthered that although no prior consensus has been made so far with other IISI member countries, JISF is preparing to request from the IISI (International Iron and Steel Institute) that this body may promptly manifest its official concepts on the matter.
Meanwhile BHP Billiton Chief Executive Officer Marius Kloppers called at Japanese steel and trading companies on the same day to provide all abouts.
|last modified : Mon 26 Nov, 2007 [10:58]|