Eurofer - which represents ArcelorMittal SA, ThyssenKrupp AG and Corus Group - said the two companies' plan to combine Australian iron-ore operations would allow them to share information on output that could affect industry negotiations to set benchmark prices and volumes.

The steel makers said the deal "will have the same impact on the iron ore market" as a merger between the two miners.

Last year, BHP Billiton had made a hostile US$68 billion bid for Anglo-Australian rival Rio Tinto. BHP Billiton abandoned the takeover attempt after EU regulators opposed it because they said it could harm competition. Rio Tinto also complained that it was undervalued in the bid.