BHP share price jumps as Oz Minerals acquisition clears major hurdle

Shareholders are expected to vote on the $9.6 billion deal shortly.

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Key points
  • The BHP share price is up around 1% right now, trading at $48.335
  • It comes amid news Brazil's competition regulator has given the company's planned acquisition of Oz Minerals its tick of approval
  • Meanwhile, the mining sector is outperforming after iron ore futures lifted on Friday

The BHP Group Ltd (ASX: BHP) share price is in the green amid news the company's planned takeover of S&P/ASX 200 Index (ASX: XJO) copper giant Oz Minerals Limited (ASX: OZL) has been approved by regulators in Brazil.

That's one less hurdle the $9.6 billion acquisition has to face. Though, it's still conditional on shareholder and court approval.

It also comes as the mining sector bounces back from Friday's carnage. The S&P/ASX 200 Materials Index (ASX: XMJ) is currently up 0.79%.

Right now, the BHP share price is among the sector's front-runners, up 0.89% to trade at $48.335. In earlier trade, it shot 1.33% higher.

At the same time, the S&P/ASX 200 Index (ASX: XJO) is down 0.05%.

Let's take a closer look at the latest on the ASX 200 iron ore miner's massive copper deal.

Female miner on a walkie talkie.

Image source: Getty Images

BHP share price lifts amid Oz Minerals regulatory approval

The BHP share price is rising amid news Brazil's Administrative Council for Economic Defence has given the company's planned acquisition of ASX 200 copper miner Oz Minerals its tick of approval.

A scheme booklet is expected to be sent to Oz Minerals shareholders early next month.

The takeover target accepted BHP's $28.25 per share bid in November. The Oz Minerals share price is currently $27.96, the same as Friday's closing price.

The acquisition is expected to face a shareholder vote in late March or early April, with the takeover implemented shortly afterwards.

The BHP share price might also be being impacted by iron ore's upwards movement today. Iron ore futures lifted 1.1% on Friday to reach US$125.26 a tonne. That marked a weekly gain of 2.1% despite Thursday's 1.9% fall.

The materials sector plunged 1.4% on Friday, likely partially driven by the steel-making ingredient's slump, with BHP shares closing the day 1.9% lower.

And it wasn't just Friday that saw the iron ore giant struggling. Its stock has been underperforming against the ASX 200 for a while now.

Shares in the mining monolith have gained around 6% so far this year while the ASX 200 has jumped nearly 9%. Looking longer term, BHP shares have gained 1% over the last 12 months compared to the index's 6% rise.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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