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MLex Comment: Iron ore sales mechanisms to play significant role in EC’s BHP, Rio JV review

By Dafydd Nelson ( February 8, 2010, 16:01 GMT | Comment) -- An analysis of the way iron ore is sold by producers to their customers will undoubtedly form a significant part of the European Commission’s probe into the possible anticompetitive effects of BHP Billiton and Rio Tinto’s proposed iron ore production joint venture. A move away from long-term contracts could reduce the risk of price co-ordination, but scrutiny will likely fall on the parties’ incentive to restrict output.An analysis of the way iron ore is sold by producers to their customers will undoubtedly form a significant part of the European Commission’s probe into the possible anticompetitive effects of BHP Billiton and Rio Tinto’s proposed iron ore production joint venture....

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