BHP has today announced a final Board decision to unify BHP’s corporate structure under its existing Australian parent company, BHP Group Limited.
The BHP Board believes that unification is in the best interests of BHP shareholders. It will result in a corporate structure that is simpler and more efficient, reduces duplication and streamlines BHP’s governance and internal processes.
A unified structure will also improve flexibility for portfolio reshaping to maximise shareholder value over the long-term, including facilitating a simpler separation of the Petroleum business.
Simple. Efficient. Agile.
Now is an attractive time to unify BHP’s corporate structure as we continue to position our portfolio to grow value from commodities that will benefit from global trends such as decarbonisation and economic growth.
Just as we continually review and enhance our portfolio, we also regularly review our Dual Listed Company structure to ensure it is fit-for-purpose. The most recent review concluded now is the right time to unify our corporate structure.
A simpler corporate structure will make BHP simpler and more agile, with the strategic flexibility to shape our portfolio for the future. For example, unification would enable BHP to undertake certain transactions more simply and efficiently than it can under the Dual Listed Company structure. This includes the agreement to merge BHP’s Petroleum business with Woodside Petroleum. Future demergers and equity raising transactions would also be simpler to execute following unification.