BHP gives Oz Minerals a best and final takeover offer

Nick Sundich Nick Sundich, November 18, 2022

Over three months since BHP first made an offer for Oz Minerals (ASX:OZL), it has come in with a ‘best and final offer’, over $1bn higher than the original bid. The Oz Minerals board told shareholders it intends to give the offer it’s blessing, but it isn’t done deal just yet.

 

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Oz Minerals pursued by BHP 

Oz Minerals is the only primary copper producer in the ASX 100. The company’s copper and nickel assets, most of which are in Australia, not only provide minerals critical to decarbonisation, but also have low-carbon intensity and will grow production significantly in the next few years. 

BHP made its first bid at $25 a share, hoping to grow its own copper portfolio and recognise synergies. The Oz Minerals board rejected the first bid, considered it as opportunistic – at a 15% discount to its highs last January and occurring at a time when copper prices dropped from their recent peaks. 

Three months on, BHP came back with a $28.25 a share bid, valuing the company at A$9.6bn.

 

Is it a done deal?

The board told shareholders it intended to recommend the offer and shares jumped by nearly 4% this morning. However, a deal has not formally been signed and it is subject to a number of conditions including due diligence.

One thing shareholders can be all but certain about is that BHP won’t be increasing its bid because the deal was ‘the best and final price’, in absence of a competing proposal. There aren’t too many other major miners who could make a ~$10bn takeover proposal.

 

Oz Minerals (ASX:OZL) share price chart (Graph: TradingView)

 

 

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