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MELBOURNE - BHP Billiton chief executive Marius Kloppers is expected to meet Chinese customers today amid growing opposition to a proposed merger with Rio Tinto.
Kloppers, at present in South Korea, is on a global investor blitz to sell the merits of a merger and is expected to meet Chinese clients for two days of talks.
But vocal opposition to a merger is starting to emerge from Europe and Japan.
Brussels-based International Iron and Steel Institute (IISI), which represents 180 steel producers, says the merger would create a monopoly and is not in the public interest.
"Not only will the steel industry strongly oppose the potential merger of BHP Billiton and Rio Tinto, but it is vital that the competition authorities in the EU, USA, China, Australia and Japan also recognise the threat that this merger poses to the interests of steel consumers and the general public," IISI secretary-general Ian Christmas said in a statement.
"This merger should not be allowed to proceed."
Elsewhere, Japan Iron and Steel Federation chairman Hajime Bada also opposed the merger, saying it was undesirable for competition.
Bada, who is also the president of Japan's second largest steelmaker, JFE Steel Corp, met Kloppers to discuss the proposed merger.
If successful, the merger would create the world's largest producer of coking coal, thermal coal, copper and aluminium, and account for almost 40 per cent of China's iron ore imports.
Rio Tinto has knocked back the proposal of three BHP Billiton shares for every Rio Tinto share, saying the offer was "way-out of the ball-park".
Rio Tinto chief executive Tom Albanese is expected to break his silence on the merger on Monday.
- AAP
