Aug. 19, 2014, 6:29 PM
- BHP Billiton's (NYSE:BHP) move to spin off a raft of assets it deems non-core - businesses that employ ~25% of the company's current workforce but deliver less than 10% of its profits - creates a new midsize metals player that could become a prime takeover target for rivals.
- WSJ mentions Glencore (OTCPK:GLCNF, OTCPK:GLNCY) as a potential suitor, and Mick Davis, the former CEO of Xstrata who left the company when it merged with Glencore, is on the lookout for acquisitions for his new investment vehicle.
- On the other hand, the new BHP entity could suffer from dis-synergies after the spinoff, potentially facing higher costs in borrowing funds and procuring supplies.
Aug. 19, 2014, 7:14 AM
- After announcing the creation of its new global metals and mining company, BHP Billiton (NYSE:BHP) says it is now in talks with potential buyers for all, or part, of its Nickel West division in Australia, which was excluded from the company's major restructuring.
- "We continue to talk to interested parties," says CEO Andrew Mackenzie. "This is a matter of commercial discussions with several potential buyers."
Aug. 19, 2014, 3:40 AM
- BHP Billiton (NYSE:BHP) has announced its plans to form a new global metals and mining company based around its aluminium, coal, manganese, nickel and silver assets. The new company will be listed on the Australian stock exchange, with a secondary listing in South Africa.
- "With a simpler portfolio, we are targeting sustainable, productivity-led gains of at least $3.5B per annum by the end of the 2017 financial year," says CEO Andrew Mackenzie.
- The demerger will leave BHP Billiton focused on its long-life iron ore, copper, coal, petroleum and potash basins.
Apr. 27, 2014, 4:04 AM
- Former Xstrata boss Mick Davis, who has set up a new venture called X2, is believed to have made an offer to acquire BHP Billiton's (BHP) thermal coal division, the U.K.'s Sunday Times reports.
- X2 has raised $3.7B (£2.2B) from investors and is understood to have appointed JPMorgan to provide as much as $8B in debt.
- Earnings at BHP's thermal-coal operations have plummeted by two-thirds in the past three years, the Sunday Times notes.
Apr. 15, 2014, 8:36 AM
- Potash (POT) +2.3% premarket on speculation that BHP Billiton (BHP) may make another run at acquiring the fertilizer company after failing in a prior buyout attempt in 2010, according to the Globe & Mail.
- The report says industry speculation is "intense" because "the numbers work, the personalities are closer to working, [and] even the politics are not insurmountable because the landscape has shifted," but it adds that "there is no sign that any potential deal is underway."
Aug. 22, 2013, 9:45 AM
- Mosaic's (MOS +1%) takeover prospects suffered a blow when BHP Billiton (BHP +2.3%) renewed its commitment to building its own potash mine, Bloomberg writes; a is now “wishful thinking” on the part of MOS shareholders, a Credit Suisse analyst says.
- The Jansen mine would be the largest single source of potash, with a projected production capacity of 10M metric tons/year; the project may end up costing BHP ~$16B, while MOS' enterprise value has fallen to $14.8B.
- BHP could have used Jansen as a bargaining chip to persuade MOS to sell itself because the project will introduce more competition and supply.
Aug. 6, 2013, 10:31 AM
- BAML urges BHP Billiton (BHP) to make a bold response to the implosion of one of the world’s two big potash cartels: Buy an established potash producer such as Mosaic (MOS) as an alternative to building the Jansen mine in Saskatchewan.
- Jansen could eventually produce as much as 10M tons/year of potash, but likely will cost ~$15B to build. BAML says that’s on a par with its enterprise value of MOS, which could produce up to 12M tons/year; MOS also has a phosphate business worth as much as $8B that could be sold.
- "Mosaic could provide instant critical scale via a large scale, low-cost, long-life asset," the firm says. (earlier)
May. 8, 2013, 10:27 AMMosaic (MOS +1.6%) represents the best option for an acquirer seeking to gain a foothold in the potash industry, and BHP is the most likely suitor, Bloomberg speculates. On May 26, charitable trusts associated with Cargill’s founding family can begin the process of selling restricted MOS shares they got when Mosaic split from Cargill Inc. in 2011, opening the door to a sale of the whole company. | Comment!
Jan. 24, 2013, 10:34 AMCommodity prices are rebounding, but don’t expect megadeals in mining as a new crop of CEOs takes over, WSJ reports. At least 20 mining CEOs have stepped down in the past year, some related to unsuccessful acquisitions, and big deals are unlikely when many CEOs are new to their roles. "There will be M&A but it is likely to be very strategic, brownfield-related and very carefully thought through.” | 2 Comments
Dec. 11, 2012, 5:02 PMBHP Billiton (BHP) sells its 8.33% stake in the East Browse joint venture and 20% interest in the West Browse joint venture, both located off the West Australian coast, to PetroChina (PTR) for $1.63B in cash. BHP exec Michael Yeager says the liquefied natural gas project interests were a non-strategic asset. | Comment!
Dec. 6, 2012, 9:18 AMInvestors seem to take seriously the latest takeover chatter surrounding Walter Energy (WLT), sending shares +7.5% premarket as vague rumors circulate that bidders could emerge. BHP Billiton (BHP) is said to be interested again; Glencore (GLCNF.PK) could be another candidate; Anglo American has been mentioned in the past. Other coal names are up: ANR +1.9%, CNX +1.6%, ACI +1.3%, BTU +0.8%. | 5 Comments
Dec. 5, 2012, 7:45 PMSpeculation continues to build on rumors that BHP Billiton (BHP) is considering a bid for Walter Energy (WLT). BHP is said to be considering a $55 per share all cash offer, and if true, would be the "swan song" for current WLT CEO Marius Kloppers, whom which BHP is said to be planning a successor for. Xtrata's Mick ‘the miner’ Davis is said to be a frontrunner to take his place. BHP -0.2%, WLT -2.3% AH. | 1 Comment
Nov. 30, 2012, 10:00 AM
Nov. 13, 2012, 9:57 AMHarry Winston Diamond (HWD -2.1%) agrees to buy BHP Billiton’s (BHP -1.2%) diamonds business for $500M, as BHP elects to get out of the diamond business because it could not build up enough scale to make it worthwhile. The deal includes BHP’s 80% stake in the rich Ekati diamond mine in the Northwest Territories, along with its diamond marketing business. | Comment!
Oct. 3, 2012, 3:52 PMCount BHP Billiton (BHP -1.2%) among big players pursuing a stake in Petrobras' (PBR -1.3%) Gulf of Mexico oil fields, a pairing that would significantly bolster BHP's already strong presence in the Gulf, WSJ reports. PBR has stakes in more than 100 exploration blocks in the Gulf; its sale plans are part of a broader effort to raise ~$15B through divestments. | 1 Comment
Sep. 4, 2012, 9:58 AMBHP's slowing of its project development cycle will make it more difficult for aspiring iron ore producers to raise financing, likely leaving cash-strapped smaller companies vulnerable to takeovers, Ernst & Young's Mike Elliott speculates. Miners such as CLF, TCK or AAUKY.PK that could cut costs by sharing infrastructure to get their material from pit to port could be the most logical candidates. | Comment!
BHP vs. ETF Alternatives
BHP Billiton Ltd is a natural resources company. The Company is engaged in the producing commodities, including iron ore, metallurgical and energy coal, conventional and unconventional oil and gas, copper, aluminium, manganese, uranium, nickel and silver.
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