BHP and Woodside in energy mega-merger

BHP and Woodside Petroleum are bringing their oil and gas portfolios together in a merger to create a global top 10 independent energy company. An expanded Woodside will be owned 52 per cent by existing Woodside shareholders and 48 per cent by existing BHP shareholders. BHP chief executive officer Mike Henry. “The merger of our petroleum assets with Woodside will create an organisation with the scale, capability and expertise to meet global demand for key oil and gas resources the world will need over the energy transition," BHP chief executive officer Mike Henry said. “Bringing the BHP and Woodside assets together will provide choice for BHP shareholders, unlock synergies in how these assets are managed and allow capital to be deployed to the highest quality opportunities. "The merger will also enable the skills, talent and technology of both organisations to build a resilient future as the world’s needs evolve.” The transaction is subject to confirmatory due diligence, negotiation and execution of full form transaction documents, and satisfaction of conditions precedent including shareholder, regulatory and other approvals. Largest energy company on the ASX The proposed merger would create the largest energy company listed on the ASX, with the merged company boasting a market value of more than $40 billion on current prices. The move prompted climate groups from across Perth and WA to gather outside BHP’s Perth headquarters to protest the shift of its petroleum arm to Woodside. “The aim of today’s demonstration is quite simple. To show BHP that simply dumping their fossil fuel projects at the feet of Woodside is not going to cut it," Anthony Collins, a campaigner with climate change movement 350 Perth, said. Meg O’Neill. “Rather than take responsibility for the highly polluting petroleum business sites BHP has built, this is a cynical attempt to simply walk away." Under the proposed transaction, Woodside would acquire 100 per cent of the issued share capital of BHP Petroleum International in exchange for shares in Woodside which will deliver 48 per cent to BHP shareholders on completion. Meanwhile, the Board of Woodside has appointed acting chief executive officer Meg O’Neill as the company’s CEO and managing director, succeeding Peter Coleman who retired from Woodside in June 2021.

BHP and Woodside in energy mega-merger

Industry Queensland

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