Warner: Era of big mining M&A at an end

First State's Joanne Warner has said greater regulatory scrutiny means mega-cap M&A on the scale of BHP Billiton's failed 2008 bid for Rio Tinto will never return.

“The BHP Billiton-Rio Tinto deal will never be revisited, because it just would not get through the competition regulations,” said Warner, manager of the $888m First State Global Resources fund. BHP Billiton engaged in a year-long pursuit of Rio Tinto between 2007 and 2008, before finally dropping its $66bn bid in November 2008 because of increased risks arising from the financial crisis. BHP has since experienced other M&A difficulties: two years later the Australian miner’s $40bn bid for Canadian firm Potash was dropped following political opposition to the move. Warner said mini...