BHP Group Acquires Oz Minerals in $6.4 Billion Deal to Secure Copper and Nickel Supply

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An Australian copper producer was purchased by a mining corporation for $6.4 billion. The deal, which is the third-largest mining acquisition in recent months, will increase BHP’s exposure to copper and enhance its nickel prospects.

Oz Minerals, an Australian copper producer, was purchased by BHP Group, a significant mining corporation, for $6.4 billion. 98.33% of Oz Minerals’ shareholders who cast ballots on Thursday, succeeding the Adelaide meeting, did so in favour of the transaction. 

This acquisition is crucial for the mining sector, given that copper is necessary for creating renewable energy sources and that numerous mining companies are vying for copper supply. 

The agreement follows Glencore’s $22.5 billion offer for Canada’s Teck Resources and Newmont’s $19.5 billion offer for Australia’s Newcrest as the third-largest mining acquisition in recent months.

“This is a strong endorsement from OZ Minerals shareholders on the value they will receive under the scheme,” said BHP CEO Mike Henry in a statement.

The acquisition will increase BHP’s exposure to copper and enhance its prospects for nickel. Additionally, it will open up access to the nearby Olympic Dam copper mine and smelting facilities owned by BHP and operated by Oz Minerals in South Australia. 

Through Oz Minerals’ West Musgrave nickel project in Western Australia, where BHP already produces nickel sulphate for clients like Tesla, the acquisition will also increase BHP’s supply of nickel.

The board of Oz Minerals unanimously authorized the acquisition, and the Australian Federal Court is anticipated to accept it. Once approved, the transaction will be completed, and Oz Minerals’ stock will be put on hold.

In their joint statement, Oz Minerals’ Chairperson Rebecca McGrath and CEO Andrew Cole expressed their gratitude to stakeholders for their contributions. The acquisition will create new opportunities and improve both companies’ respective prospects in the mining industry. 

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