A few thoughts on this Bao Steel-Rio Tinto business.

For those who don’t follow the intricacies of the international iron ore trade, here’s the deal: BHP Billiton, the world’s second largest iron ore supplier recently announced an unsolicited, US$130 billion bid for Rio Tinto, the world’s third largest iron ore supplier (both are Australian). Combined, the two companies would control roughly 40% of the…