EU Steel Makers Seek Probe Into BHP-Rio Deal

BRUSSELS (AP) — European steel makers called Tuesday for European Union antitrust regulators to probe a joint mining project between the world's No. 2 and No. 3 iron ore miners BHP Billiton Ltd and Rio Tinto PLC.

EU opposition to BHP Billiton's hostile $68 billion bid for Anglo-Australian rival Rio Tinto forced it to abandon the takeover attempt last year.

The European Commission saw competition problems with the deal that they said could hike prices and reduce choice for European mineral and metals customers. Rio Tinto also complained that the bid undervalued it.

The two miners are now planning a joint production project to pool all their iron ore assets in Western Australia state, a move that could save them billions as iron ore prices slide. Australia's BHP will also pay Rio Tinto $5.8 billion to equalize its contribution to the joint venture.

The deal rescues Rio Tinto after it scrapped a $19.5 billion deal with China's Chinalco over Australian fears that the deal would give a foreign company a strategic stake in one of the country's biggest industries. Rio's balance sheet is weighed down by $38.7 billion in debt.