BHP makes US$6.4bil binding offer for OZ Minerals

The A$28.25-a-share bid, first announced in November, will now go to shareholders for approval in late March or early April, BHP said. — Reuters

MELBOURNE: BHP Group Ltd has made a binding offer to acquire Australian copper producer OZ Minerals Ltd for A$9.6bil (US$6.4bil or RM28.4bil), securing its biggest deal in more than a decade and boosting exposure to key materials used in clean energy and electric cars.

The A$28.25 (RM84.08)-a-share bid, first announced in November, will now go to shareholders for approval in late March or early April, BHP said in a regulatory filing yesterday.

It comes nearly five months after OZ Minerals rejected its first offer of A$25 (RM74.40) a share.

The deal, unanimously supported by OZ Minerals’ board, is set to consolidate BHP’s position as one of the world’s largest producers of copper, a core metal in the clean energy transition that’s expected to see demand soar by almost 60% over the next two decades.

The mining giant has said so-called “future-facing” metals, which also include nickel and fertiliser ingredient potash, are central to its growth as iron ore use plateaus and the world moves away from fossil fuels.

“The combination of BHP and OZ Minerals’ assets, skills and technical expertise provides a unique opportunity not available under separate ownership,” BHP chief executive officer Mike Henry said in the statement.

The acquisition is BHP’s largest since the US$12.1bil (RM53.6bil) purchase of Petrohawk Energy Corp in 2011.

OZ Minerals, which has operations adjacent to BHP’s huge Olympic Dam mine in South Australia, would add around 7% to BHP’s annual copper production. It also has mines in Brazil and a key nickel project in Western Australia. — Bloomberg