What’s happening with BHP (ASX:BHP) and OZ Minerals (ASX:OZL) deal

December 21, 2022 12:22 PM AEDT | By Tamnna

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What’s happening with BHP (ASX:BHP) and OZ Minerals (ASX:OZL) deal — Image source: © Rawpixelimages | Megapixl.com

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Highlights

BHP Group published an update on the scheme implementation deed with OZ Minerals

The company has received a one-week extension to finalise the deed terms

Shares of BHP were trading in the green post the extension news

Australian mining giant BHP Group Limited (ASX:BHP) released an update on 20 December about its ongoing scheme implementation deed (SID) with OZ Minerals Limited (ASX:OZL). As per the ASX update, BHP has received an extension till 27 December 2022 from OZ Minerals over the initially provided exclusivity period of four weeks.

Shares of BHP reacted positively to the update and were trading 1.568% higher in today’s morning (21 December) trading session. One share of BHP was valued at AU$45.970 as of 11:16 AM AEDT.

Why did BHP receive an extension from OZ Minerals?

As stated in the company’s announcement, BHP entered into a Confidentiality and Exclusivity Deed with OZ Minerals on 18 November with revised non-binding indicative proposal terms. Under the revised contract terms, BHP would acquire 100% OZ Minerals shares for a cash value of AU$28.25 per OZL share. BHP was granted four weeks to conduct exclusive due diligence alongside bargaining a legally binding scheme implementation deed.

This one-week extension will enable the completion and agreement of the binding scheme implementation deed, as mentioned in the ASX filing. BHP confirmed that its due diligence had been completed and that its proposed transaction price of AU$28.25 per OZL share has met all regulatory requirements.

Both parties also informed the market that approval from the boards of BHP and OZ Minerals would be required before moving ahead with any scheme implementation deed, as a binding SID may or may not be agreed upon.

Share performance of BHP in a year

Following today’s rise, the share price of BHP has increased by 0.63% in the last five trading sessions and 7.40% in a month. Additionally, BHP’s shares have improved in value by 12.65% over the six months, 8.85% on a year-to-date basis (YTD), and 10.80% over the course of a year.

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