BHP Group → OZ Minerals
completedBHP completed its $9.6bn acquisition of copper and nickel miner OZ Minerals in May 2023, at a revised offer of $28.25 per share.
OZ Minerals' Carrapateena copper mine and Prominent Hill sit close to BHP's own Olympic Dam copper hub and Nickel West operations in South Australia, so combining them unlocked operational synergies and gave BHP more exposure to the copper and nickel that decarbonisation, EVs, and renewables all depend on.
BHP's revised offer was a 49% premium to where OZ Minerals' stock traded before the approach, giving shareholders certainty during a volatile period for mining markets rather than betting on OZ Minerals' growth projects alone. Around 98% of shareholders voted in favour.
BHP shares rose about 2% when the original Scheme Implementation Deed was announced in December 2022. OZ Minerals shares traded up toward the offer price as the deal progressed through court and shareholder approval.
Analysts called the tie-up a strong strategic fit given Carrapateena's proximity to Olympic Dam, though some flagged the 7.5x EV/EBITDA multiple as full versus OZ Minerals' historical trading range.
Deal mechanics
Citigroup Global Markets Australia (financial adviser to BHP)
Macquarie Capital and Greenhill & Co (financial advisers) and Gilbert + Tobin (legal adviser), all advising OZ Minerals
All-cash scheme of arrangement at A$28.25 per OZ Minerals share
About 7.5x EV/EBITDA, above OZ Minerals' long-run trading average of roughly 6.5-7x
Required Federal Court sanction of the scheme and clearance from Vietnam's competition authority (BHP has Vietnamese operations); specific FIRB/ACCC clearance details weren't broken out in available coverage
Cash consideration funded from BHP's own balance sheet