The much talked about joint venture between BHP Billiton and Ro Tinto may not be able to fructify. The Australian iron ore JV, decided after hearing the complaints that were put by the EU about the union.

The information was given by the sources that are close to both the firms. No comment was made by the representatives of EU or the EU's competition watchdog. The issue was raised during an event that saw eminent lawyers and commissioners attend it.

It is known that the commission has serious reservations against the deal.

And now, some people are also saying that the deal has broken because of the pressure that has been put by Germany. It was against the deal as it was structured currently.

A proposed investigation is also going on regarding the deal and it was proposed in Brussels. If the deal had succeeded then the single largest iron ore producer would have been formed and that would have been harmful for competition.

And now the next step that the commission is following is the publishing of the formal statement of rejection.