The consumer watchdog has sought further information from miner Fortescue Metals on its proposed tie-up with Brazilian iron ore giant Vale.
Fortescue on Tuesday announced it was in talks with Vale to strike a deal that could give the Brazilian company a stake up to 15 per cent, and help the two miners boost their combined market share in China.
The Australian Competition & Consumer Commission said it is aware of the proposed joint venture and is seeking further information from the parties.
"We will look at it, but in saying that, we are not necessarily signalling any concerns," ACCC chairman Rod Sims said.
Under the preliminary agreement signed by the two companies, Vale could buy up to 15 per cent of Fortescue's shares on market, and would also have the option of taking stakes in its existing or future mining assets.
Both companies will also form a joint venture for blending their iron ore at key Chinese ports, which could help them match the benchmark quality in the largest iron ore market, and help take share away from rivals BHP Billiton and Rio Tinto.
On Tuesday, Fortescue chief executive Nev Power had said the agreements will be subject to various regulatory approvals, but expected the process to be completed smoothly as the deal would not lead to reduced competition in any of the geographies.
Fortescue and Vale, along with BHP and Rio, account for nearly three quarters of the sea-borne iron ore supplies to China.
Fortescue on Wednesday said there was no leak of confidential information regarding the tie-up, ahead of the announcement.
The company was responding to a query from the Australian Securities Exchange, asking it to explain a 24 per cent jump in its shares on Monday, a day before it announced the agreement.
The surge in the share price was consistent with the 23 per cent increase in iron ore prices on that day, it said, on hopes of a short term steel production boost in China.
Fortescue said the memorandum of understanding with Vale was confidential but both companies had agreed to work together on the terms of separate but complimentary stock exchange releases as they recognised the potential for a leak.
Shares in the company were trading eight cents, or 2.84 per cent lower, at $2.71.
Several analysts have cut their rating on the stock.
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