The Pilbara iron ore joint venture between Rio and BHP has been blocked by German antitrust authorities.
After consistent market rumours that Rio would look to walk away from the $116 billion asset merger, it will instead be blocked by Germany’s Federal Cartel Office, which has announced its intention to prohibit the proposed iron ore joint venture.
Both mining companies voiced their disappointment at the move, but stated they “acknowledge the concerns expressed by some regulators and of the obstacles to achieving clearance for the joint venture.”
While no further steps towards the joint venture have been taken as yet, it was reported by The Australian that the two would look to restructure the venture so that it would not have to go through European regulators, who were predicted early on to stymie the merger.
The German agency will officially send a formal statement to the miners next week.