BHP to Combine Oil Unit With Woodside, End Dual Listing in London
August 17 2021 - 3:28AM
Dow Jones News
By Rhiannon Hoyle
SYDNEY--BHP Group Ltd. said it will combine its oil-and-gas
business with Australia's Woodside Petroleum Ltd. in an all-stock
deal, and separately said it would end its dual listing in
London.
BHP also approved a $5.7-billion project to mine potash in
Canada, as it adjusts to the prospect of a lower-carbon world,
where old profit drivers such as petroleum and thermal coal are
less appealing.
The miner said its shareholders will own 48% of the expanded
Woodside, which will become one of the world's ten-largest
producers of liquefied natural gas. Combining the businesses is
forecast to generate more than US$400 million in annual savings,
the companies said in a joint statement.
"The merger of our petroleum assets with Woodside will create an
organization with the scale, capability and expertise to meet
global demand for key oil and gas resources the world will need
over the energy transition," said BHP Chief Executive Mike
Henry.
The miner said Tuesday it would end its dual listing to unify
under its existing Australian parent. Holders of its PLC stock in
London will be given Australian Ltd stock on a one-for-one basis,
the company said.
BHP also said it go ahead with stage one of its Jansen potash
project in Canada's Saskatchewan province. The operation is
expected to start producing the fertilizer ingredient in 2027, with
an initial annualized capacity of 4.35 million metric tons.
The announcements were made alongside BHP's annual earnings. The
world's biggest mining company said it made a net profit of $11.3
billion in the year through June, up from a profit of $7.96 billion
in the same period a year earlier. Directors declared a record
final dividend of $2.00 a share.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
August 17, 2021 03:28 ET (07:28 GMT)
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