Skip to: Content
Skip to: Site Navigation
Skip to: Search

September 7, 2008 12:22:43 AM CDT

Learn about Newser Points »

« Back to the grid | Next story »

Mining Mergers May Take Page From Big Oil

Posted Dec 18, 07 3:08 PM CST in Business 

(Newser) – When Anglo-Australian mining giant BHP Billiton announced its bid to merge with archrival Rio Tinto, the Wall Street Journal got déjà vu. The deal, which would combine the world’s largest and third-largest miners, looks a lot like the late-'90s megamergers that produced today’s Big Oil titans. “Really the same game is playing out,” says one emerging-market expert.

When companies like Exxon and Mobil came together, they were bidding for survival in a depressed market. Commodity prices are already through the roof, but consolidation could drive them up further, upping the cost of consumer goods worldwide. "People with monopoly power don't use it to decrease prices and develop more supply," says one industry watcher.

Source Wall Street Journal

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Rockefellers Pump Exxon Execs for Changes

    May 24, 08 1:58 PM CDT
    Rockefellers Pump Exxon Execs for Changes Executives at Exxon are bracing for an onslaught from the Rockefeller family, whose patriarch founded the oil firm’s predecessor a century ago, the Wall Street Journal reports. Led by John D. Rockefeller’s great-granddaughter, the family wants Exxon to pursue renewable forms of energy and appoint an independent chairman. More »

  • Oil Insanity Pinned to Speculators

    Feb 28, 08 5:54 PM CST
    Oil Insanity Pinned to Speculators Crude-oil prices have doubled in recent months, a development not linked to fundamental supply and demand—but rather, observers tell Der Spiegel, to rampant speculation among investors looking for a stable buck. The prospect of recession would typically drive prices down, but analysts say a decade-old oil investment rush by pension funds and big banks has made the market volatile and distorted. More »

  • House Passes Bill to Halt Big Oil Tax Breaks

    Feb 28, 08 5:36 AM CST
    House Passes Bill to Halt Big Oil Tax Breaks Millions of dollars in tax breaks enjoyed by the top five oil companies would be rescinded under an $18 billion tax package which cleared the House of Representatives yesterday. The money saved would be plowed into creating alternative sustainable energy sources. It represents just a penny a gallon to the oil giants Exxon Mobil, Chevron, ConocoPhillips, BP and Shell. More »

  • Venezuelan Prez Threatens to Cut Off US Oil

    Feb 11, 08 3:00 AM CST
    Venezuelan Prez Threatens to Cut Off US Oil Venezuelan President Hugo Chavez is threatening to cut off US oil supplies if Exxon Mobil wins a court ruling to seize billions of dollars in Venezuelan assets, AP reports. The Texas-based oil giant has challenged Venezuela’s efforts to nationalize a multi-billion-dollar oil project, and the fiery leader promised an "economic war" if a decision goes against his nation. A British court has already frozen some $12 billion in assets. More »

  • Exxon Posts Historic Profits

    Feb 1, 08 8:00 AM CST
    Exxon Posts Historic Profits Exxon Mobil today reported the biggest quarterly and annual profit in US history, the Wall Street Journal reports, as record oil prices propelled net income up 14%, to $11.66 billion, or $2.13 per share. That topped analyst estimates, and investors rushed to the stock in pre-market trading. Annually, the company posted profits of $40.6 billion, again besting its own record. More »

Alcan President and CEO Dick Evans, left, and Rio Tinto CEO Tom Albanese address a news conference in Montreal, Thursday, July 12, 2007. Mining giant Rio Tinto has offered to buy Canadian aluminum company...   (Associated Press)
An earthmover is used to shovel coal onto trucks at a mine near Changzhi, Shanxi, China, Tuesday, May 15, 2007. (AP Photo/Ng Han Guan)   (Associated Press)
Molten steel is poured at the Shougang Steel company in Beijing, in this Feb. 9, 2007 file photo. China's iron and steel industry has voiced strong objections to a proposed merger between mining groups...   (Associated Press)
In this photograph from BHP Billiton, a worker watches a conveyer belt as iron ore is taken from Mining Area C in the Pilbara in Western Australia in this undated photo. Mining giant BHP Billiton vowed...   (Associated Press)
In this photo released by BHP Billiton shows a heavy earth mover in action at the BHP Billiton Iron Ore mine at Newman in Western Australia in this undated photo. BHP Billiton PLC ended months of speculation...   (Associated Press)
Miners of the Yubileinaya mine in southern Siberia, Thursday, May 24, 2007. A series of mergers between the world's top mining companies could lead to a cartel reminiscent of Big Oil. (AP Photo/RIA-Novosti)   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (1 of 1)

Tags

oil  • ExxonMobil  • mining  • Rio Tinto  • BHP Billiton Ltd.


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular


Other Business Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »