13th Dec 2021 07:11
(Alliance News) - BHP Group PLC announced on Monday it had ended talks with rival Wyloo Metals Pty Ltd over the takeover of the Canadian nickel group Noront Resources.
Negotiations were aimed at finding the possibility of a mutually beneficial arrangement for the acquisition of Noront by BHP.
In a statement on Monday, BHP said the parties have determined that they are unable to reach an agreement.
In a separate statement on Monday, Wyloo announced it had sweetened its offer for Noront to CAD1.10 per share, which is 47% above what BHP is proposing and nearly 60% above its original offer of CAD0.70. Wyloo said the Noront board supported the latest bid.
Wyloo, owned by billionaire mining magnate Andrew Forrest and already owns 37.2% in Noront, said it did not intend to support any alternate offers for Noront.
BHP is offering CAD0.75 per share for Noront.
The mining heavyweight in October upped the ante in its bidding war with Wyloo, increasing its offer for Noront to CAD0.75 per share, from its original CAD0.55. Wyloo first made an offer for Noront in May of CAD0.315 per share.
BHP shares ended 2.7% higher to AUD41.04 each in Sydney on Monday, and opened 2.2% higher to ZAR461.23 each in Johannesburg. Noront last traded at CAD0.73 in Toronto.
By Artwell Dlamini; [email protected]
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