Oil and Gas News

BHP announces unification

BHP announces unification

BHP will unify its corporate structure under the existing Australian parent company, BHP Group Limited.

Unification is anticipated to be finished by 31 January 2022, pending approval by BHP Group Limited and BHP Group Plc shareholders, as well as receipt of remaining regulatory approvals and UK Court sanction of the scheme.

The BHP board made the decision as they believed it is in the best interests of BHP shareholders.

The unification will also create simpler, more streamlined and more efficient processes, as well as reduce duplications.

Opportunities to improve flexibility for portfolio reshaping to maximise shareholder value over the long-term was also a consideration in the unification.

BHP chair Ken MacKenzie said it was the “right time” to make the decision.

“Unification will create one parent company, one share register and one share price globally,” MacKenzie said.

“We believe this is the best structure for BHP to provide the resources the world needs and create long-term shareholder value.”

BHP CEO Mike Henry said a unified corporate structure will make BHP “simpler and more agile”

“[Unification will give BHP] the strategic flexibility required to shape our portfolio to deliver value through producing the commodities needed for continued economic growth, improved living standards, electrification and decarbonisation,” Henry said.

“We will retain listing in the UK, US, South Africa and Australia, providing BHP with continued access to global markets and giving shareholders the opportunity to benefit from our portfolio, management and operating performance for long-term value.”

A shareholder Circular and a Prospectus are anticipated to be published around 8 December 2021.

For more information visit BHP’s website.

Subscribe to Oil & Gas Today for the latest industry news.