BHP completes OZ Minerals takeover

BHP

Mining giant BHP (ASX: BHP) has completed its acquisition of OZ Minerals (previous ASX code: OZL), with the latter’s shares set to be removed from the Australian Securities Exchange on 3 May 2023.

The acquisition, completed through BHP Lonsdale Investments, a wholly-owned subsidiary of BHP Group Limited, involved the purchase of 100% of OZ Minerals shares via a scheme of arrangement.

The deal, valued at $9.63b, was approved by the Federal Court in April 2023.

BHP chief executive officer Mike Henry said that the acquisition strengthens BHP’s portfolio in copper and nickel and is in line with its strategy to meet the increasing demand for critical minerals needed for electric vehicles, wind turbines, and solar panels.

He also noted that combining the two organisations would provide options for growth, bring new talent and innovation to unlock these resources in a sustainable way, and deliver value to shareholders and communities.

As part of the acquisition, BHP will focus on the safe and reliable operation of OZ Minerals’ Olympic Dam, Prominent Hill, and Carrapateena assets.

BHP aims to build a shared culture of innovation and performance and progress sustainable growth options to establish a copper province in South Australia.

BHP’s chief operating officer Edgar Basto welcomed the OZ Minerals team to BHP as new colleagues with shared values of safety, respect, innovation, and performance.

He noted that bringing together the quality resources, talented teams, and innovative thinking of the two companies would help create opportunities for local employment, small businesses, regional communities, traditional owners, and the South Australian economy.

OZ Minerals shareholders received $28.25 per OZ share this week.

The amount included a scheme consideration paid by BHP of $26.50 for each OZL share held at the scheme record date and a fully franked special dividend paid by OZL of $1.75 for each OZL share held on the special dividend record date.

The cash payment by BHP has been funded using a combination of BHP’s existing cash reserves and the proceeds of a debt facility.

The acquisition gives BHP access to OZ Minerals’ significant portfolio of future-facing minerals, including copper and nickel, that are vital to the world’s push for clean energy.

OZ Minerals has a number of operations in Brazil, including the Santa Lúcia iron oxide copper-gold mineral deposit, the Antas copper-gold mine, and CentroGold, one of the largest undeveloped gold projects in Brazil.

BHP has indicated that it intends to retain the majority of OZ Minerals’ workforce, particularly at Prominent Hill and Carrapateena.

This reinforces BHP’s commitment to meeting the growing demand for critical minerals while promoting sustainability and innovation in the mining industry.