Metals And Mining
BHP Group Ltd. raised its offer for OZ Minerals Ltd. to value the Australian mining firm at $6.34 billion, as it seeks to produce more copper and nickel needed for electric vehicles, wind turbines, and solar farms.
OZ Minerals said it aims to recommend shareholders vote in favor of BHP’s revised offer of A$28.25, the equivalent of about $18.90, a share. A completed deal would represent BHP’s largest acquisition since 2011 when it bought Pertohawk Energy Corp. for over $12 billion.
Melbourne, Australia, based BHP approached Adelaide-based OZ Minerals about a potential takeover in August 2022, but its offer was quickly rejected by directors as insufficient.
On Friday, OZ Minerals said it had received a new proposal from BHP to acquire the firm. The latest offer represents an improvement on BHP’s initial proposal of A$25 a share.
BHP predicts that demand for copper, which is an excellent conductor of electricity and has widespread uses including in construction and electronics, will double in the next 2-3 decades. OZ Minerals runs two gold-and-copper mining operations in Southern Australia, and another in Brazil.
Global miners including BHP have been cautious about acquisitions in recent years after megadeals during a commodities boom a decade ago led to widespread write-downs, frustrating stakeholders.