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Resources multinational approved to acquire five competing mines for $9B

Prominent Hill mine truck
Prominent Hill mine truck

A major mineral producer received the nod to purchase five operations from a competitor.

OZ Minerals Limited (OZL) shareholders recently approved BHP’s $9.6 billion takeover offer. A total of 88.34 per cent of investors participated and 98.33 per cent of them voted, either online or via proxy, in favour of BHP’s scheme of arrangement.

The deal includes absorbing the target company’s 3420-strong workforce across the following operations:

  • Prominent Hill, 650km northwest of Adelaide
  • Carrapateena, 160km north of Port Augusta
  • West Musgrave, 500km west of Uluru
  • Carajás East and West, Brazil
  • Gurupi Province, Brazil.

The acquisition next requires Federal Court approval, after which OZL will suspend trading shares. BHP predicts the deal could take effect as early as 2 May 2023.

“OZL intends to lodge a copy of the orders of the court with the Australian Securities and Investments Commission on Tuesday, 18 April 2023, so that the scheme will become effective on that date. If this occurs, OZL expects that the Australian Securities Exchange (ASX) will suspend OZL shares from trading on [the] ASX with effect from the close of trading on that day,” OZL said in a public statement.

BHP expects to retain the “vast majority” of OZL employees who will join a “much larger” organisation. Affected workers are promised training programs, flexible work options, career progression opportunities and other “industry-leading” benefits.

“We look forward to bringing together our talent and resources to create an even stronger organisation,” BHP CEO Mike Henry said in a public statement.

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