BHP Billiton Will Create Value For Shareholders In The Long Term
- As the commodity boom has ended, miners have been forced to reassess their strategy.
- This week BHP Billiton announced spin-off of its non-core assets into a new independent company.
- BHP Billiton’s shares fell sharply after the announcement of the spin-off; however, the drop in shares was due to the fact that the company did not announce a share buyback.
- Weaker iron ore prices have resulted in BHP Billiton not announcing a buyback.
- The company’s strategy to simplify its portfolio and focus on core assets will eventually create value for shareholders.