2nd Dec 2021 09:20
(Alliance News) - BHP Group PLC on Thursday said it has made a final board decision to unify its corporate structure under its Australian parent company BHP Group Ltd, and expects the merger to be completed by the end of January 2022.
Following a strategic review of its dual-listed company structure, the miner first announced its intent in August to merge its corporate structure, with a primary listing on the Australian Securities Exchange, a standard listing in London and a secondary listing in Johannesburg.
BHP said that this would be the right time to act, following changes to the group's portfolio, a reduced earnings contribution from its PLC assets and a reduction in the unification's expected cost.
BHP also stated that the unification would not lead to a change in its operations, namely board composition, cash flow generation or dividend policy.
The unification is now subject to regulatory approval, shareholder approval at a general meeting scheduled for January 20, 2022, and the scheme being sanctioned by the UK courts.
"A unified corporate structure will make BHP simpler and more agile, with 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," said Chief Executive Officer Mike Henry.
"We will retain listings 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," Henry added.
Shares in BHP Group were down 0.5% at 2,064.00 pence on Thursday in London, while its Johannesburg shares were 0.2% lower at ZAR434.81.
By Dayo Laniyan; [email protected]
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