BHP Billiton files for Rio Tinto takeover with EU

BRUSSELS (Reuters) - BHP Billiton (BHP.AX) (BLT.L), the world's biggest mining group, has formally filed with the European Commission for clearance to take over rival Rio Tinto (RIO.L), a Commission list of M&A cases showed on Friday.

The Commission, the European Union's executive arm and also its antitrust regulator, set a deadline of July 4 for consideration of the deal.

By that date the Commission must either approve the deal on competition grounds, open an in-depth investigation, or permit a short extension.

Rio Tinto spurned BHP's all-share offer, currently worth more than $180 billion (91 billion pounds), shortly after BHP announced it on February 6. The filing was delayed for months during pre-filing talks with the European Commission.

Analysts say the most contentious area is likely to be iron ore, since the combined firm would control around a third of seaborne trade in the raw material for making steel.

BHP Billiton shares in London were down 1.6 percent at 1,929 pence, and Rio Tinto's were down 1.6 percent at 6,082 pence at 3:52 p.m. British time.

EU steel firms have vowed to fight the merger, worried a combined group would have undue pricing power over iron ore, contract prices of which have recently increased.

"We cannot believe that the Commission will authorise the merger of two of three mining companies which are dominating almost 75 percent of the world market for seaborne iron ore," said Gordon Moffat, director general of EUROFER, the European Confederation of Iron and Steel Industries.

Moffat said Companhia Vale do Rio Doce (VALE5.SA) is the largest company with one third of the market, and the combined BHP-RIO would have nearly 40 percent of the seaborne iron ore market.