BHP’s balance sheet puts it in a strong position to seize on potential acquisitions to reshape its portfolio and push deeper into what Henry terms “future-facing” minerals – those standing to benefit from accelerating global efforts to curb greenhouse gas emissions and electrify transport.
BHP last year offloaded its petroleum business and stakes in several coal mines while seeking to grow its exposure to copper,an essential ingredient in electric wiring,and nickel,which is used in lithium-ion batteries.
Earlier this month,it lobbed an $8.4 billion offer to buy Adelaide-based copper and nickel producer Oz Minerals,but the bid was swiftly knocked back.
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Henry on Tuesday said he was disappointed with Oz Minerals’ decision to reject BHP’s offer and refusal to open its books,insisting the $25-a-share proposal was “fair and compelling”.
“In the face of that level of premium and compelling nature of the offer,it was pretty disappointing,I have to say,that the board has chosen not to engage,” Henry said.
While investors and analysts have flagged the likelihood of BHP returning with a more attractive offer,Henry said the miner would remain “so disciplined” when it came to decisions around potential acquisitions. He said Oz Minerals would be “nice to have” but was not essential to BHP’s copper and nickel growth strategy as the company had significant internal options to expand its existing resources.