Oz Minerals on Friday said it intended to unanimously recommend shareholders approve the $28.25-a-share offer,representing a 49 per cent premium on its stock price before BHP’s original offer,unless it received a higher bid.
“BHP’s revised proposal is a clear reflection of Oz Minerals’ unique set of highly strategic,quality assets in quality jurisdictions and an enviable multi-generational growth pipeline of copper and nickel assets in strong demand due to global electrification,” Oz Minerals chief Andrew Cole said.
BHP’s push to acquire Oz Minerals is the latest sign of the mining giant’s accelerating efforts to secure greater supplies of what chief executive Mike Henry terms “future-facing” commodities,such as copper and nickel,which will be needed to power the clean energy transition. Copper is a crucial ingredient in electric wiring,while nickel is critical to the production of lithium-ion batteries.
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Last year,BHP sold its stakes in several coal mines and offloaded its entire global oil and gas division,partly to free up its ability to increase spending on nickel and copper.
On Friday,Henry described the takeover offer as highly compelling for Oz Minerals shareholders,and said it would provide “certainty at a time of macroeconomic uncertainty and market volatility”.
“The combination of BHP and Oz Minerals’ assets,skills and technical expertise provides a unique opportunity not available under separate ownership,” Henry said,citing the two companies’ complementary resources in South Australia,BHP’s strong balance sheet and capital discipline.