Woodside, BHP sign binding merger deal

Australian LNG firm Woodside said it has signed a binding merger agreement with BHP’s oil and gas business.

The signing of the share sale agreement follows the merger commitment deed revealed in August.

Under the deal, Woodside will acquire the entire share capital of BHP Petroleum International in exchange for new Woodside shares.

On completion of the merger, Woodside will issue new shares expected to comprise about 48 percent of all Woodside shares on a post-issue basis as consideration for the acquisition of BHP Petroleum.

Moreover, the merger would create a global top 10 independent energy company by production and the largest energy company listed on the ASX, according to Woodside.

Also, the combined company would have a high margin oil portfolio, long life LNG assets and the financial resilience to “help supply the energy needed for global growth and
development over the energy transition.”

Woodside CEO Meg O’Neill said the merger would deliver “enduring value” for Woodside shareholders but also BHP shareholders that receive Woodside shares under the merger.

“Woodside and BHP’s respective oil and gas portfolios and experienced teams are better together. The combination will deliver the increased scale, diversity and resilience to better navigate the energy transition,” she said.

Woodside and BHP have also executed an integration and transition services agreement which provides for the planning of post-completion integration activities.

The two firms expect to complete the merger in the second quarter of 2022, subject to approvals, including by Woodside shareholders.

- Advertisements -

Most Popular

ExxonMobil working on larger Rovuma LNG export project in Mozambique

US energy giant ExxonMobil has boosted the capacity of the planned Rovuma LNG onshore terminal in Mozambique and is...

Sempra takes FID on Port Arthur LNG project

US LNG player Sempra Infrastructure, a unit of Sempra, has taken a final investment decision for the first phase...

Excelerate to buy FSRU from Maran Gas

US floating LNG player Excelerate Energy plans to exercise an option to buy the 2020-built FSRU Sequoia from Greece’s...

More News Like This

Australia’s Woodside makes board changes

Australian LNG producer Woodside has revealed new appointments to its board as two of the company's directors are stepping...

Woodside’s 2022 profit soars

Australian LNG producer Woodside reported a 228 percent rise in its 2022 net profit on the back of record...

Woodside to shut one NWS LNG train for maintenance in Q3

Australian LNG player Woodside is planning to shut the first train at its North West Shelf LNG terminal in...

Woodside and partners to study sending Sunrise gas to LNG plant in East Timor

Australian LNG player Woodside and its partners Timor GAP and Japan's Osaka Gas will study sending natural gas from...