/ 29 August 2008

BHP agrees to Rio bid scrutiny by SA

BHP Billiton, involved in a near $150-billion bid for rival Rio Tinto, has agreed to provide information for South Africa’s Competition Commission to evaluate the takeover move.

BHP, the world’s biggest miner, initially objected to the commission’s demand for information, saying it was irrelevant. It was unclear why the company decided late on Thursday night not to contest the request.

If BHP takes over Rio it would be the world’s second-biggest takeover after cellphone giant Vodafone’s purchase of Mannesmann in 2000, and would create a $360-billion company.

BHP’s bid has been the subject of investigations by competition authorities around the world.

”BHP has agreed to obey the subpoena and provide the documents requested by the commission, subject to confidentiality claims in terms of standard commission procedures,” the commission said in a statement.

BHP’s spokesperson in Johannesburg was unavailable for comment.

The summons in South Africa comes after Australia’s antitrust regulator said it could raise competition issues in iron ore. — Reuters