Australia Clears Way for BHP Billiton Proposed Rio Tinto Takeover

The Australian Competition and Consumer Commission (ACCC) decided not object to BHP Billiton's proposed acquisition of Rio Tinto, clearing a legal hurdle in Australia.

BHP Billiton is offering 3.4 BHP Billiton’s shares for each Rio Tinto share in its bid to take over the rival mining company. Rio Tinto has rejected the offer, saying it fails to recognize the underlying value of Rio Tinto’s quality assets and prospects.

In July, the U.S. Department of Justice also announced it would not oppose the transaction. A few days later, the European Commission (EC) has opened an in-depth investigation into the proposed acquisition. The move follows an initial investigation, which indicated that the proposed takeover “raises serious doubts as to its compatibility with the Single Market,” the EC said in July.

"We are very pleased to have received notice that the ACCC will not object to our proposed acquisition of Rio Tinto,” BHP Billiton's Chief Commercial Officer Alberto Calderon, said.