the more i read, the more i worry, page-164

more from UBS this morning...

China, Europe, Japan steelmakers to fight Rio-BHP venture - Japanese, Chinese and European steelmakers joined forces to fight a plan by Rio Tinto and BHP Billiton to link up iron ore operations, while China called for "a fully open international market". Steelmakers believe a tie-up between the second- and third-largest producers of the raw material to make steel would further concentrate the industry, which saw prices quadruple from 2004 to 2008. "A merger of iron ore assets of this type in a world market already dominated by just three suppliers would not be in the interests of the steel industry, European consumers or the European economy," industry body Eurofer said on Tuesday. The two mining heavyweights, which with Brazil's Vale account for nearly 70 percent of the world's traded iron ore, face tough anti-trust scrutiny, but analysts say the planned venture's shrewd structure could mean they sidestep some concerns. Rio and BHP are betting that keeping their iron ore marketing operations separate will ease anti-trust concerns. The Japan Iron and Steel Federation said it would also fight the venture, echoing a statement by the World Steel Association. "While it takes the form of a joint production venture, it is in effect an anti-competitive move similar to that of the failed takeover bid by BHP of Rio Tinto," said the Japanese steel body, which includes world No. 2 steelmaker Nippon Steel Corp. "A joint venture agreement like this has a strong momopolistic tint," the China Iron and Steel Association said…..(Reuters)

please DYOR...thx...