In the contractual year 2005/2006, the Brazilian iron ore giant Vale, negotiated 71% price increase with Chinese customers. During the same period, the Australian BHP asked award reflects the difference in the cost of freight shipping iron ore to China from Australia against Brazil. This requirement was later dropped due to strong opposition from Chinese steelmakers. In the contractual year 2007/2008, after the price increase 65-71% negotiate Vale, other Australian giant iron ore, Rio Tinto, demanded and received the award, which saw a general increase in prices reached 200% over the previous year. This case examines the reasons for these price negotiations in the light of the alleged hostile BHP joining Rio Tinto, which will lead not only to the overall market share of almost 40% in the production of traded iron ore, but the monopoly on the supply of Australian iron ore. This case can be used in business class, negotiations and strategies give students the various aspects of the negotiation process. Questions such as hostile takeovers, price, market share and business relationships are discussed in this case. "Hide
by Ivan Png, Zhigang Tao, Carola Ramon-Berjano Source: University of Hong Kong, 15 pages. Publication date: April 02, 2009. Prod. #: HKU826-PDF-ENG
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