The BHP Group Ltd (ASX: BHP) share price is pushing higher on Friday morning.
In early trade, the mining giant's shares are up 2% to $47.15.
This means the BHP share price is now up 11% since the start of the year.
Why is the BHP share price pushing higher?
Investors have been bidding the BHP share price higher in response to news that Woodside Petroleum Limited (ASX: WPL) shareholders have voted in favour of the merger with BHP's oil and gas portfolio.
According to the release, following the receipt of shareholder approval, BHP and Woodside are now working towards completing the merger by 1 June 2022.
Subject to completion occurring, BHP expects to receive 914,768,948 newly issued Woodside ordinary shares. These shares have a value of approximately $27 billion.
What does this mean for BHP shareholders?
Once BHP receives the newly issued Woodside shares, these will be distributed to shareholders via an in specie dividend.
The release explains that eligible BHP shareholders will receive one newly issued Woodside share for every 5.534 BHP shares they hold at the close of play on Thursday 26 May 2022.
In addition, holders of BHP American depositary shares (ADS) will be entitled to receive one Woodside ADS for every 2.767 BHP ADS they hold at the record date. This is subject to the payment of taxes and applicable fees and expenses.
The release also notes that BHP shareholders will only be entitled to a whole number of Woodside shares. This means that any entitlement to a fraction of a Woodside share will be rounded down to the nearest whole share.
What's next?
To ensure that you are eligible to receive the Woodside shares, you'll need to own BHP shares the day before they trade ex-dividend at the commencement of trade on 25 May.
If you do this, you'll receive your shares in the merged entity on 1 June, if all goes to plan with the transaction.
