BHP Billiton Ltd. (BHP.AU) said Tuesday former Ford Motor Co (F) Chief Executive Jac Nasser will become its new chairman when long serving incumbent Don Argus retires early in 2010.

Lebanese-born Nasser, who migrated to Australia as a child, joined the miner's board as a non-executive director in 2006 and is a member of the board's risk and audit committee.

The 61-year-old lives in the U.S., but a spokeswoman for BHP said he has committed to spend the majority of his time in Australia after taking up the chairmanship.

Analysts welcomed the appointment and said Nasser may have edged out rival contender, Commonwealth Bank Ltd. (CBA.AU) Chairman John Schubert, because he is younger and BHP is looking for the stability of another long-term chairman.

Senior Independent Director for BHP Billiton John Buchanan said Nasser would make an excellent successor to Argus.

"He combines deep international business knowledge along with outstanding financial, senior management and board experiences," Buchanan said.

Nasser worked for Ford for 33 years rising to become president and chief executive in 1999, and is currently a partner of One Equity partners, a director of British Sky Broadcasting PLC and a member of the international advisory board of Allianz A.G.

UBS mining analyst Glyn Lawcock said both Nasser and Schubert had strong credentials for the job and so the market had not been too concerned about which man was chosen.

Nasser had a long and distinguished career at Ford and brought a lot of positive attributes to the job, Lawcock said.

"He was well renowned for cost cutting which is something all companies should continue to do and I'm sure that BHP, despite its best efforts probably still has more to do," he said.

Nasser replaces 71-year-old Argus, a stalwart of the Australian corporate scene and former chief executive of National Australia Bank Ltd. (NAB.AU), who has been on BHP's board for 13 years and has chaired the world's biggest miner since 1999.

Argus has been dubbed "Don't Argue" for his tough attitude, and one analyst said BHP Billiton Chief Executive Marius Kloppers is more likely to be able to sway the incoming chairman.

-By Alex Wilson, Dow Jones Newswires; 61-3-9292-2094; alex.wilson@dowjones.com