BHP announces $57 billion merger with Billiton
09:41, Monday, 19 March 2001
Sydney - Friday - February 16: (RWE) - BHP today confirmed it
would merge with Billiton "to establish a premier diversified global
resources group" which would be called BHP Billiton.
Based on closing prices of BHP and Billiton on March 16, the
aggregate market capitalisation of BHP Billiton would be $57 billion and
its enterprise value $71 billion.
The merger will be achieved through a dual-listed company
structure.
BHP Billiton will be run by a unified board and management team
with headquarters in Melbourne and a "significant corporate management
centre" in London.
Chief executive will be Mr Paul Anderson and deputy chief
executive Mr Brian Gilbertson.
Mr Anderson will retire by the end of calendar 2002, to be
succeeded by Mr Gilbertson.
Primary listings will be maintained on the London and Australian
stock exchanges, as will the secondary listing on the Johannesburg
exchange and the ADR listing in New York.
Under the terms of the merger, one Billiton share will have an
economic interest in 0.4842 BHP shares.
There will be a bonus issue to BHP shareholders at a ratio of
1.0651 BHP shares for each share held.
BHP intends to spin off its steel assets to its shareholders
with an adjustment to compensate Billiton shareholders.
"This is a sensational fit," Mr Anderson said.
"The companies balance each other well with an exceptional
breadth of assets and capabilities which have taken many years to
develop.
"The outstanding project portfolio is enhanced by a strong
balance sheet, strong capital disciplines and a common commitment to
shareholder value," he said.
BHP closed on Friday at $20.96.
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BHP confirms $58b Billiton merger plan
09:48, Monday, 19 March 2001
Australia's BHP is to merge with Billiton of Britain.
The company has just confirmed it plans to proceed with a $58 billion merger.
Billiton is the world's biggest producer of chrome and manganese ores.
A senior resource analyst at Macquarie Equities, Paul Barnes, says the merger will make the new combined company the world's second biggest mining house after Alcoa of the US.
"[It will be] larger than Rio Tinto and Anglo if it goes ahead, to achieve critical mass globally so that if an investor looks to gain exposure to global commodity prices...or that side of the cyclical market, then BHP now becomes the stock of preference," he said.
The new company will be 58 per cent owned by BHP shareholders and will be headquartered in Melbourne.
BHP head Paul Anderson will be chief executive officer.
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*TOP NEWS* BHP/Billiton merger
17:09, Monday, 19 March 2001
BHP AND BILLITON TO MERGE INTO US$28 BILLION COMPANY
> BHP, Billiton plan US$28 billion merger
> BHP Billiton to spend US$7-8 billion
> BHP boss says merger is crowning moment
> S&P puts BHP ratings on positive watch
> Moody's places BHP ratings under review
> Japan smelters wary of BHP, Billiton merger
> Australia's steel city trembles at BHP merger
> Woodside still seen an option for BHP
> BHP, Billiton see energy business growth
> Highlights of BHP Billiton merger
> World's top metals and mining firms
> Birth of a new resources giant |
