BHP: London’s lost bauble
Anglo-Australian mining giant is shifting its primary stock-listing to Sydney
Bad news for the FTSE 100, said Neil Hume in the Financial Times. The UK blue-chip index “is set to lose its biggest company”. The £137bn Anglo-Australian mining giant BHP is ditching its “dual-corporate structure”, which currently sees it listed as two separate companies on the London and Sydney stock exchanges, and shifting its “primary stock-listing to Australia”.
The move marks “the most radical overhaul” to BHP’s business since it was formed in a merger two decades ago, said August Graham on PA Media. Some investors, notably the activist New York-based hedge fund Elliott Advisors, have been pushing for this “for years”, as a means of unlocking billions in value.
Yet BHP’s already in the money, said Hume in the FT. This year’s commodities boom has delivered soaring profits of US$24.6bn, enabling it to deliver “a record final dividend” of $10.1bn. Moreover, CEO Mike Henry is making good progress shifting focus towards in-demand metals like copper and nickel, and “green commodities” – this week confirming a plan to merge BHP’s oil and gas business with Australia’s Woodside.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The shift Down Under could yet hit a pothole. In 2018, the Anglo-Dutch giant Unilever dropped a comparable “unification” scheme involving relocation to Rotterdam, following pressure from London shareholders. A similar rebellion may now be fermenting over BHP. “For UK investors this sucks,” complained one investor. “This is a fantastic company.”
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Tom Crewe's 6 favorite works that challenge societal norms
Feature The novelist recommends works by Margaret Oliphant, Patrick White, and more
By The Week US Published
-
The Don's enablers
Opinion Even Republicans who know better won't get in Trump's way
By William Falk Published
-
Crossword: May 7, 2024
The Week's daily crossword
By The Week Staff Published
-
Shein: could the year’s mega-IPO fall apart at the seams?
Talking Point Latest hitch is a pre-float 'security review' that could deter potential investors
By The Week UK Published
-
Labor market strong as inflation sinks
Feature And more of the week's best financial insight
By The Week US Published
-
Midair blowout: another black mark for Boeing
Feature This isn't the first production issue Boeing has encountered
By The Week US Published
-
Behemoths of the seas
The Explainer Cruise liners keep getting bigger, with the world’s largest 'megaship' ever built set to make its maiden voyage this month.
By The Week Staff Published
-
Holiday season: Fed optimism cheers investors
Feature The feds believe their 'pivot' will make a recession unlikely
By The Week US Published
-
Older workers stay in the labor force
Feature And more of the week's best financial insight
By The Week Staff Published
-
America's most in-demand job
Feature And more of the week's best financial insight
By The Week US Published
-
Currency: the long reign of the mighty dollar
Feature Argentina is planning to drop the peso in favor of the US dollar
By The Week US Published