After a long tussle, BHP has finally acquired OZ Minerals.
👉 Background: BHP (short for Broken Hill Proprietary) is Australia’s biggest mining company. And OZ Minerals is a miner with two copper and gold mines in South Australia.
👉 What happened: Earlier this year, the OZ Minerals board rejected an $8.4 billion acquisition bid from BHP. At the time, BHP acted cool - it's not a "must have". But clearly it was because a new deal has been struck.
👉 What else: This $9.6 billion deal is a whopping 49 per cent premium on BHP's stock price before the original offer. And with OZ Minerals under its belt, BHP is ramping up its uber green plans for the future.
💡Copper is a key pillar in the world’s plans to get to net zero emissions over the next few decades - and mining giants know this.
💡Get this: copper is a critical part of any renewable energy project as well as electric vehicles. Think the cabling for switches, sockets, light fittings.
💡In fact, S&P Global reckons demand for copper will be greater than supply by 2025 so high quality companies like OZ Minerals will likely become more valuable as the energy transition ramps up.
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