All eyes could be on the BHP Group Ltd (ASX: BHP) share price over the coming months as whispers about potential acquisitions, divestments, and takeover battles swirl.
There's speculation the iron ore giant might go up against Fortescue Metals Group Ltd (ASX: FMG)'s boss Andrew 'Twiggy' Forrest for neighbouring nickel miner Mincor Resources NL (ASX: MCR).
Meanwhile, energy giant New Hope Corporation Limited (ASX: NHC) plans to cast its eye over BHP's Queensland coal assets.
Right now, the BHP share price is $43.74, 0.48% higher than its previous close.
For comparison, the S&P/ASX 200 Index (ASX: XJO) is gaining 0.97% and the S&P/ASX 200 Materials Index (ASX: XMJ) is up 0.5%.
Let's take a closer look at potential M&A activity that could face the Big Australian in 2023.
Image source: Getty Images
Could BHP soon face masses of M&A activity?
Mergers and acquisitions have literally surrounded BHP's Nickel West business in recent months.
Neighbours IGO Ltd (ASX: IGO) and previously ASX-listed Western Areas merged last year.
Now, Forrest's privately-owned Wyloo is bidding $1.40 per share for Mincor – a 35% premium to the stock's Monday close.
And BHP might be motivated to go head-to-head with the billionaire, the Australian Financial Review reports. It needs nickel like that supplied by Mincor to run its Kalgoorlie smelter.
Interestingly, the market already appears to have priced in a higher bid for Mincor shares.
The nickel miner's stock has rocketed 48% since Wyloo put forward its on-market offer. It's now trading at $1.535 – almost 9% higher than the $1.40 per share bid.
Meanwhile, a buyer for BHP's Blackwater and Daunia coal mines may have emerged – and its shares are also housed on the ASX.
New Hope CEO Rob Bishop has confirmed the company will be "looking at those assets", telling The Wall Street Journal it could be a "fairly competitive process, but something [New Hope] will participate in".
The Queensland mines were previously reported to be worth $2 billion combined. New Hope dropped its first-half earnings yesterday, detailing a $971 million cash balance.
And let's not forget BHP is expected to get the final tick of approval to acquire all shares in copper miner Oz Minerals Ltd (ASX: OZL) shortly. Oz Minerals shareholders will vote on the scheme on 13 April.
No doubt, then, ASX M&A fans will be keeping a close eye on BHP – and some of its neighbours and peers – over the coming months.
BHP share price snapshot
The BHP share price has dropped 4.2% in 2023 so far but is up 0.55% over the last 12 months.
Comparatively, the ASX 200 has gone nowhere since the start of 2023 and has fallen 4.3% over the last 12 months.
