OZ Minerals Rejects BHP's $5B Takeover Bid

BHP Group Ltd BHP was rebuffed in its A$8.34 billion ($5.8 billion) takeover bid for OZ Minerals Limited OZMLF, in a setback as it pushes to secure copper and nickel assets for a shift into clean energy and the electric vehicles (EVs) market.

Australia's OZ Minerals said the A$25 per share unsolicited, conditional, and non-binding indicative offer undervalued the nickel and copper miner and was "opportunistic" when copper prices and its stock price have fallen from recent peaks.

BHP's offer marked a 32% premium to the closing price of OZ shares of A$18.92 on Friday.

OZ is mining minerals that are in strong demand, particularly for "global electrification and decarbonization," and "we do not consider the proposal from BHP sufficiently recognizes these attributes," OZ Chief Executive Andrew Cole said.

BHP did not say if it would make a revised offer.

OZ disclosed that BHP had acquired a less than 5% stake in its shares via derivative instruments.

OZ said BHP's offer did not reflect the value of potential operational synergies the firms could have in South Australia and Western Australia.

BHP said its proposed price was materially above brokers' average price targets for the stock.

"We are disappointed that the board of OZL has indicated that it is not willing to entertain our compelling offer or provide us with access to due diligence in relation to our proposal," said Mr. Henry, BHP's chief executive.

Price Action: BHP shares are down 0.70% at $54.02 during the premarket session on the last check Monday.

Photo by Michael Coghlan via Flickr