All Things Newz
Business

OZ Minerals Said to Hold Out for A$10 Billion in Potential Sale


Article content

(Bloomberg) —

OZ Minerals Ltd. is seeking about A$10 billion ($6.7 billion) in a potential sale as BHP Group Ltd. pursues a deal for the Australian miner, people with knowledge of the matter said. 

Article content

Sydney-listed OZ Minerals believes an offer of around A$30 per share would better reflect its growth prospects and be a starting point for further negotiations, the people said, asking not to be identified because the information is private. It rejected an earlier bid from BHP in August of A$25 per share. 

Article content

BHP has been considering raising its bid for OZ Minerals and could increase its proposal as soon as this month, Bloomberg News has reported. It’s unclear how much BHP is willing to offer and whether it would meet OZ Minerals’ expectations. Shares in OZ Minerals closed at A$25.25 on Friday.

Deliberations are ongoing, and OZ Minerals could end up pushing for a different price, the people said. 

OZ Minerals declined to comment while BHP didn’t immediately respond to a request for comment outside of regular business hours. 

BHP, which this year hived off its oil and gas assets, is seeking growth in commodities tied to trends including low-emissions transport and clean energy — particularly copper for renewables and nickel for lithium-ion batteries. BHP is also pouring billions of dollars into a giant new potash mine in Canada to enter the fertilizer sector. 

Article content

The biggest miners are universally bullish on copper, expecting surging consumption in cities and electric vehicles as the global economy decarbonizes. Earlier this month, Rio Tinto Group reached a definitive agreement to acquire all remaining shares of miner Turquoise Hill Resources Ltd., owner of a giant copper mine in Mongolia.

OZ Minerals operates copper mines in South Australia, where BHP has its giant Olympic Dam operation and Oak Dam prospect. 

BHP’s offer for OZ Minerals marked an attempted return to big-ticket dealmaking for the miner. Its last major transaction was a $12.1 billion deal for Petrohawk Energy Corp. in 2011, though it has since made smaller moves for copper and nickel assets.



Source link

Related posts

Osino Reports Voting Results From Annual General and Special Meeting of Shareholders

Netflix dismisses lawsuit against the creators of ‘The Unofficial Bridgerton Musical’

Trades by Fed’s Powell, Clarida violated no rules -watchdog