The BHP Group Ltd (ASX: BHP) share price has been in freefall through August.
Shares in the resources giant finished July at $53.49. They’ve since dropped to trade at $45.75 apiece. That’s a drop of 14.47%.
Let’s take a look at what’s been weighing on the ASX 200 giant.
The month that’s been for the BHP share price
The BHP share price has slipped 14.5% this month. The big news that has been moving it is the company’s plan to merge with Woodside Petroleum Limited (ASX: WPL).
The proposal came to light alongside BHP’s full-year results. It would see BHP merge its oil and gas assets with Woodside, while Woodside would provide new shares to BHP shareholders.
The end goal would see BHP’s shareholders with a 48% holding in Woodside.
While BHP’s shares slid just 1.4% on the day it broke the news, they fell another 12.9% over the 2 following sessions.
In addition to its controversial merger plan, the BHP share price has been weighed down by investors worried about its concerning climate commitments and its project development plans.
BHP has been forced to put its climate commitments to a shareholder vote at its annual general meeting. The vote was called for by the Australasian Centre for Corporate Responsibility (ACCR), a shareholder advocacy group.
The group is representing BHP’s shareholders. It’s calling for a review into the company’s links with lobby groups advocating against the goals of the Paris Agreement.
Additionally, in early August the company announced it will spend US$544 million at its Shenzi North project, as well as US$258 million on its Trion project’s front end engineering design (FEED) phase.
Finally, the price of iron ore is undoubtedly dragging on the BHP share price.
The iron ore price has fallen 24% over the last month. Right now, a tonne of iron ore will set a buyer back US$159.58.