Global mining giant BHP Billiton's $132 billion hostile takeover bid for rival Rio Tinto has come under renewed fire from Beijing, with a Chinese Government advisor urging European regulators to reject the proposed takeover.
Xiaoye Wang, a senior adviser to the Chinese State Council and National People's Congress told a conference at Melbourne Law School the merger would have an detrimental affect on all Asian economies, which rely heavily on iron ore imports for steel production, reports The Age.
"In my opinion this merger (will have) a very bad impact on China, " Professor Wang said.
"The BHP merger should be reviewed by the Chinese anti-monopoly agency. China is the biggest consumer of iron ore products and 40 per cent is from Australia".
"After the merger there will be two competitors only. I believe this is harmful for competition."
BHP Billiton shares have come under pressure in recent weeks with prices of key commodities falling across the board, however its proposed takeover has received the blessing of the Australian Competition and Consumer Commission (ACCC).
The ACCC said the proposed acquisition was unlikely to substantially lessen competition, with the decision sparking the biggest one-day percentage jump in Rio shares since BHP launched the all-stock bid in February.
The decision by European regulators is due by January 15.
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