BHP Billiton has sweetened its bid to acquire rival Rio Tinto, reportedly offering $147 billion for its close competitor in the production of iron ore. A combination of the two companies would control a third of the world's iron ore production, and along with market leader Vale would control 70%of the market for this valuable commodity.
BHP said iron ore output for the second quarter climbed 9% on year to 27.7 million metric tons, helped by expansions of its operations in Western Australia. The firm is also engaged in talks to acquire competitor Rio Tinto, with its most recent bid ta over $110 billion.
Iron ore producer Rio Tinto, engaged in talks about a merger with its rival BHP Billiton for several months, has rejected BHP's initial offer of a one-for-three stock exchange. BHP is expected to up its offer as the two firms continue negotiations.