Telegraph.co.uk: Anglo American to pore over BHP and Rio’s iron ore assets
What makes Anglo or Xstrata think they can outbid the Chinese for decent iron ore assets? If this merger happens on the condition that Rio Tinto is broken up to a degree, we will see what the value of a set of grade A assets is. Expect for the Europeans that Samarco and IOC will both go on the block first as those are the assets that compete in Europe. I do not see EU antitrust wasting time and energy on Australia, and if they do they go after Australian assets, they will go after assets such as Hope Downs, where there is a joint venture partner who can buy out Rio Tinto and truly open up competition. Imagine this: IOC owned by Xstrata, Samarco owned by Anglo, and Hope Downs owned by Gina. Now that is an entertaining set of thoughts.
