Woodside completes merger with BHP Petroleum
Woodside Energy has completed the merger with BHP’s oil and gas portfolio, the company said on June 1. Woodside will receive net cash of approximately $1bn as part of the deal.
The cash boost was the balance of the $1.8bn net cash flows generated by BHP Petroleum since the merger was deemed effective on July 1, 2021, less $800mn representing BHP’s entitlement to cash dividends paid by Woodside over the same period.
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Woodside has acquired the entire share capital of BHP Petroleum International and issued 914.77mn new shares to BHP. The new Woodside shares are expected to start trading on the Australian Securities Exchange on June 2. Trading of Woodside American Depositary Shares on the New York Stock Exchange is expected to commence on the same day while trading on the London Stock Exchange is expected to begin on June 6.
The combined entity will be among the top 10 independent energy companies. The tie-up is expected to create $400mn/yr in synergies through corporate processes and systems, combining capabilities and improving capital efficiency. The merger was announced in August this year and a binding agreement was signed in November. The merged entity will be owned 52% by existing Woodside shareholders and 48% by existing BHP shareholders.
CEO Meg O’Neill said the completion of the merger was one of the “most significant” events in Woodside’s 67-year history and marked the start of a new chapter for the company.
“We believe the completion of the merger will enable Woodside to play a more significant role in the energy transition that is imperative as we respond to climate change while ensuring reliable and affordable supplies of energy to a growing and aspirational global population,” she said.