BHP Ltd., Melbourne, reported that its Board has given final approval to unify the group’s dual listed structure under its existing Australian parent company, BHP Group Ltd.
The Board believes unification is in the best interests of BHP shareholders, the mining group said in a Dec. 2 statement.
“It will result in a corporate structure that is simpler and more efficient, reduces duplication, and streamlines BHP’s governance and internal processes,” the group said.
“A unified structure will also improve flexibility for portfolio reshaping to maximize shareholder value over the long-term, including facilitating a simpler separation of the Petroleum business,” they added.
BHP announced its intention to unify the DLC structure in August (GM Aug. 20, p. 1). The mining group’s DLC structure has two parent companies (BHP Group Ltd. and BHP Group Plc) operating as a single economic entity, and was established with the BHP and Billiton merger in 2001.
Unification is expected to be complete by Jan. 31, 2022, subject to approval by the shareholders of both BHP Group Ltd. and BHP Group Plc, and the receipt of remaining regulatory approvals and U.K. Court sanction of the scheme.
BHP said it will retain listings in the U.K., U.S., South Africa, and Australia.