Dec. 5 (Bloomberg) -- BHP Billiton Ltd. and Rio Tinto Group today agreed on the terms of their proposed iron ore joint venture.

“The companies today signed binding agreements on the proposed JV that cover all aspects of how the joint venture will operate and be governed,” Rio said in an e-mailed statement. “The companies have also filed submissions with the European Commission and the Australian Competition and Consumer Commission in relation to the proposed production joint venture and expect to submit filings in other relevant jurisdictions shortly.”

The production joint venture will encompass all current and future Western Australian iron ore assets and liabilities and “deliver substantial synergies,” the statement said. “Rio Tinto and BHP Billiton believe the net present value of these unique production and development synergies will be in excess of $10 billion.”

Rio and BHP said the European Commission will likely review the venture under. Taking into account all regulatory review processes and shareholder approvals, the companies expect completion in the second half of next year.

Seems the steel guys get ready for action.

Kind Regards,

Inca.