BHP and Woodside Energy have completed the merger of their respective oil and gas portfolios, creating one of the world’s biggest energy companies in the process.
The merger has been on a journey to completion, with the deal commencing as a merger commitment deed between the two companies in August 2021, before the two signed a binding share sale agreement in November 2021.
Following approval by the National Offshore Petroleum Titles Administrator (NOPTA), Woodside shareholders gave the green light to the merger in May. This paved the way for its completion on June 1.
Acquiring the entire share capital of BHP Petroleum International, Woodside has issued 914,768,948 new Woodside shares to BHP, which BHP will distribute to its eligible shareholders.
The expanded Woodside will be 52 per cent-owned by its existing shareholders and 48 per cent by existing BHP shareholders.
Woodside chief executive officer Meg O’Neill said the completion of the merger was a capstone moment for the company.
“Today, Woodside begins its journey as a global company, becoming a bigger supplier of the energy that the world needs right now and will continue to demand in the future,” she said.
“The merger delivers a diverse portfolio of quality operating assets, plus a suite of growth opportunities across oil, gas and new energy that promises ongoing value for our shareholders.
“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.”
The merger sees Woodside become a top 10 global independent energy company by hydrocarbon production and the largest energy company listed on the ASX. Woodside intends to leverage the larger portfolio to deliver increased cash flow to fund future projects and shareholder returns.
The process of integrating the two companies has commenced, with updated production guidance, reserves position and other related information to be made available in due course.