Sydney - Anglo-Australian mining company BHP Billiton Ltd learned Wednesday that its 120-billion-US-dollar takeover bid for rival Rio Tinto Ltd would not be blocked by the local regulator. Shares in the takeover target surged more than 12 per cent on the news that the Australian Competition and Consumer Commission (ACCC) had decided the deal was unlikely to lessen competition in any relevant market.
BHP's hostile offer was still being examined by European regulators but has received a positive vetting in the United States.
"While significant concerns were raised by interested parties in Australia and overseas, the ACCC found that the proposed acquisition would not be likely to substantially lessen competition in any relevant market," the commission said in a statement.
Rio Tinto is the world's second-biggest iron ore producer and BHP is the third-largest. Steelmakers, particularly those in China, have urged regulators to block the takeover for fear that an iron ore cartel would be formed.
BHP, the world's biggest mining company, has increased its offer for its fellow Anglo-Australian firm under a revised bid that came on the eve of a deadline set by British regulators for its all-scrip offer.
It wants Rio shareholders to accept 3.4 of its shares for every Rio share - an improvement on the three-for-one offer made in November.
