Mining behemoth BHP (ASX:BHP) has today (2 May 2023) completed the acquisition of OZ Minerals (ASX:OZL) via implementation of the scheme of arrangement.
The mining giant is now the ultimate parent company of OZ Minerals.
OZ Minerals shareholders today received a total cash consideration of $28.25 per share, comprising the scheme consideration paid by BHP of $26.50 for each OZ Minerals share held at the scheme record date, which was 7pm on 24 April 2023.
As reported, the deal values OZ Minerals at $9.6 billion, making it the latest transformational M&A deal to hit the Australian market over the past 18 months.
A fully franked special dividend paid by the target of $1.75 for each of its shares held on the special dividend record date, which is 7pm on 21 April 2023. The cash payment by BHP has been funded using a combination of BHP’s existing cash reserves and the proceeds of a debt facility.
OZ Minerals has today applied to be removed from the official list of the Australian Securities Exchange (ASX). Removal is expected to occur no later than 3 May 2023.
Addressing the completion of the transaction, BHP Chief Executive Officer Mike Henry says the deal strengthens BHP’s portfolio in copper and nickel and is in line with its strategy to meet increasing demand for the critical minerals.
“Combining our 2 organisations will provide options for growth, bring new talent and innovation to unlock these resources in a sustainable way, and deliver value to shareholders and communities.”
In bringing together the BHP and OZ Minerals businesses, BHP will focus on the Olympic Dam, Prominent Hill, and Carrapateena assets, by building a shared culture of innovation and performance, and progressing sustainable growth options to establish a copper province in South Australia, the company says.
BHP Chief Operating Officer Edgar Basto adds that the deal was very synergistic, as both companies have shared values of safety, respect, innovation, and performance.
“Bringing together our quality resources, talented teams and innovative thinking will help us create opportunities…”
“Bringing together our quality resources, talented teams and innovative thinking will help us create opportunities for local employment, small businesses, regional communities, Traditional Owners and the South Australian economy.
“South Australia has the potential to be a major supplier of copper to meet the world’s increasing demand for copper and we look forward to unlocking the potential of our people and their combined talent. This will require new thinking and new technology and we are excited to begin work on the opportunities ahead.”
