The value of Woodside’s takeover of BHP’s oil and gas businesses was announced.
The merger would create a top 10 independent oil and gas producer with growth assets in Australia and the Americas worth AUD38.5 billion (USD28 billion). BHP shareholders will be paid in Woodside stock, giving BHP investors a 48% stake in the merged group.
BHP’s petroleum arm is valued at around AUD18.5 billion (USD13 billion), in line with analysts’ prediction for valuations between USD10-17 billion. The merger ratio involved no premium for BHP's assets. Woodside plans to put the share issue to a vote in the second quarter of 2022.
The deal is expected to close in 2023.
For Woodside, the acquisition will help it fund the Scarborough project as well as developments in the Gulf of Mexico. It will generate annual savings of over USD400 million from 2023.
