Woodside will acquire the entire share capital of BHP in exchange for new Woodside shares.
The merger will create the largest energy company listed on the ASX and a global top 10 independent energy company by production.
Combined, the company will have a high margin oil portfolio, long life LNG assets and the financial strength to assist in supplying the necessary energy for development and global growth over the energy transition.
BHP CEO Mike Henry said BHP and Woodside are better together, creating value for BHP shareholders.
“Merging our petroleum business with Woodside creates a large, more resilient company, better able to navigate the energy transition and grow value while doing so,” Henry said.
“Through the merger we will provide value and choice for BHP shareholders and unlock synergies in how these assets are managed.”
The completion of the merger is expected to occur in the second quarter of 2022.
As the world’s largest diversified natural resources company by market capitalisation, BHP has over 80,000 employees and contractors mostly in Australia and the Americas.
Petroleum exploration and production company Woodside recently announced they will hold a $6.9 billion share in the Scarborough and Pluto Train 2 developments.
The SSA signing follows the merger commitment deed announced in August 2021.
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