PERTH (miningweekly.com) – Oil and gas major Woodside has cleared another hurdle in its merger with major BHP’s oil and gas portfolio, with the National Offshore Petroleum Titles Administrator approving the merger under the Offshore Petroleum and Greenhouse Gas Storage Act.
Woodside shareholder approval is now the only outstanding condition precedent to the merger, with the company’s shareholders meeting on May 19 to cast a vote on the transaction.
The two companies in November last year struck an agreement to combine their respective oil and gas portfolios through a stock merger. The expanded Woodside would be owned 52% by existing Woodside shareholders and 48% by existing BHP shareholders.
BHP shareholders are expected to be entitled to one Woodside share for every 5.5340 BHP shares they hold on the record date, and based on Woodside’s share price of $25.55 at April 6, the implied value of BHP Petroleum is $23.4-billion.
Completion of the merger is on track for June 1, and BHP is expected to receive 914.8-million newly issued Woodside shares at completion.