Top global miner BHP Group has won over Oz Minerals’ shareholders as expected to go ahead with a A$9.6 billion ($6.4 billion) takeover of the Australian copper producer.
Some 98.33% of votes cast by Oz Minerals were in favour of an offer of A$26.50 cash and a A$1.75 special dividend paid to Oz Minerals investors for each share they owned, after a shareholder meeting in Adelaide on Thursday.
The deal is the third largest in global mining in recent months after Glencore offered $22.5 billion for Canada’s Teck Resources and gold miner Newmont landed a $19.5 billion offer for Australia’s Newcrest this week.
Miners are scrambling for new supplies of copper, key to the transition to renewable energy, after years of austerity led to cuts in exploration and a focus on fixing balance sheets and appeasing investors irked by overspending in the last commodity boom.
“This is a strong endorsement from OZ Minerals shareholders on the value they will receive under the scheme,” said BHP CEO Mike Henry in a statement.
Oz Minerals Chairperson Rebecca McGrath and CEO Andrew Cole in a joint statement thanked stakeholders for their contributions.
The deal will add to BHP’s copper exposure and raise its nickel prospects. It will bring in Oz Minerals’ Carapateena copper mine, close to BHP’s own Olympic Dam copper mine and smelting operations in South Australia.
Strategically it will also boost BHP’s nickel supply through Oz Minerals’ West Musgrave nickel project in Western Australia, where BHP is already producing nickel sulphate at its Nickel West operations. Its customers include Tesla.
The final regulatory hurdle is from the Federal Court of Australia, which is expected to approve the deal on Monday, April 17. Oz Minerals shares will be suspended the day after.
Oz Minerals’ board had unanimously supported the bid.
Reuters