BHP returns with improved takeover offer for OZ Minerals

BHP returns with improved takeover offer for OZ Minerals

Australia’s largest mining company, BHP, failed with an initial US$5.6Bn bid for copper producer OZ Minerals back in August.

Blue View

Since August, renewed discussions have resulted in a breakthrough offer that OZ Minerals has recommended shareholders approve. BHP has submitted a revised non-binding indicative proposal to the Board of OZ Minerals to acquire 100% of the company by way of a scheme of arrangement for a cash price of A$28.25 (~US$19) per OZL share. This corresponds to an enterprise value of A$9.6Bn (US$6.4Bn).  

OZ Minerals already produces copper concentrate at its Prominent Hill mine in South Australia and recently took a final investment decision to proceed with the West Musgrave copper-nickel project in Western Australia. The successful takeover and commissioning of the project would provide additional nickel concentrate for BHP’s Class I nickel and battery-grade nickel sulphate production at its Kwinana refinery.

Over recent years, BHP has restructured its business, placing a high priority on commodities that are used in clean energy applications, such as copper and nickel. At the same time, it has also dumped stakes in coal mines and offloaded its oil and gas division. Significantly for the mining industry, the impending takeover could represent the catalyst for a surge of consolidation activity as other miners look to secure the critical materials that will enable the clean energy transition.

  • 21 Nov 2022
  • Australia
  • BHP
  • Copper

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