Woodside and BHP Proposed Merger
Woodside and BHP to create a global energy company
On 17 August 2021, Woodside announced it is pursuing a merger with BHP’s petroleum business to create a larger, more resilient Woodside with the financial strength to fund growth and thrive through the energy transition.Video: Message from Woodside Chair and CEO
All-stock merger of Woodside and BHP’s petroleum business
Merging Woodside with BHP’s oil and gas business delivers a stronger balance sheet, increased cash flow and enduring financial strength to fund planned developments in the near term and new energy sources into the future.
The proven capabilities of both Woodside and BHP will deliver long-term value through our geographically diverse and balanced portfolio of tier 1 operating assets and low-cost and low-carbon growth opportunities.
The proposed transaction de-risks and supports Scarborough FID later this year and enables more flexible capital allocation. We will continue reducing carbon emissions from the combined portfolio towards Woodside’s ambition to be net zero by 2050.
On completion of the Transaction, BHP Petroleum’s oil and gas business would merge with Woodside, and Woodside would issue new shares to be distributed to BHP Petroleum shareholders. It is expected that the expanded Woodside will be owned 52 per cent by existing Woodside shareholders and 48 per cent by BHP shareholders.
The Transaction is subject to confirmatory due diligence, negotiation and execution of full form transaction documents which is targeted for October 2021, and satisfaction of conditions precedent including shareholder, regulatory and other approvals.
The proposal represents long-term value for Woodside and BHP shareholders, delivering a geographically diverse and balanced portfolio, while combining the global experience, proven management and technical expertise of Woodside and BHP.
61 8 9348 4087
GPO Box D188
Perth WA 6000
17 August 2021
Merger Commitment Deed executed and announced
Target execution of full form sale agreement and integration and transition services agreement
Target for Woodside shareholder meeting to approve transaction
Target completion date and issue of new Woodside shares to be distributed to BHP shareholders
The Woodside Board believes this will be positive for all our stakeholders, as it brings together our complementary assets and capabilities which will provide a strong base to deliver enduring shareholder returns, will enable us to invest in our existing and new assets, our people and our communities. Importantly, Woodside’s existing emissions reduction targets to reduce net emissions by 15% by 2025 and 30% by 2030, will be extended to the enlarged portfolio.
Richard Goyder, Woodside Chairman