BHP share price lower despite OZ Minerals' shareholders approving takeover

BHP's quest to acquire OZ Minerals took a big step forward today.

Key points
  • BHP is aiming to acquire OZ Minerals for $9.8 billion
  • OZ Minerals shareholders have voted at a scheme meeting on Thursday
  • They have given the thumbs up to BHP's $28.25 per share offer

The BHP Group Ltd (ASX: BHP) share price is trading lower on Thursday despite the miner being given some good news.

At the time of writing, the mining giant's shares are down 0.5% to $46.62.

Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market

Image source: Getty Images

What was the good news?

This morning, OZ Minerals Limited (ASX: OZL) shareholders were invited to vote on BHP's proposed acquisition of the copper miner at a scheme meeting.

The Big Australian has tabled an offer of $28.25 per share, which values OZ Minerals at $9.8 billion on an enterprise value basis.

The good news for BHP is that the deal took a big step forward today after OZ Minerals shareholders gave the deal the thumbs up.

According to the release, 98.33% of the votes cast by OZ Minerals shareholders were in favour of the scheme.

BHP's CEO, Mike Henry, was pleased with the results of the meeting. He said:

This is a strong endorsement from OZ Minerals shareholders on the value they will receive under the scheme and the hard work of the OZ Minerals team over many years to create a successful business. We look forward to bringing together our talent and resources to create an even stronger organisation.

This sentiment was echoed by OZ Minerals' management team, which commented:

Today's strong endorsement from our shareholders enables the next chapter for OZ Minerals as, pending endorsement of the Court, we will become part of a major global mining company which values our strategy of creating value for stakeholders, enabled by our agile culture of inclusion, innovation and collaboration, as well as our portfolio of modern minerals operating assets and our pipeline of growth opportunities. We thank all our stakeholders for their contribution over the years.

What's next?

The deal is not quite done just yet, but it is almost there. That's because the scheme still requires the approval of the Federal Court of Australia.

OZ Minerals is expected to apply for court orders approving the scheme on 17 April 2023. If approved by the court, the scheme is expected to become effective on 18 April 2023 and be implemented on 2 May 2023.

Motley Fool contributor James Mickleboro 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.

More on Materials Shares

Female miner in hard hat and safety vest on laptop with mining drill in background.
Materials Shares

Why are Lynas Rare Earths shares crashing 6% today?

Are Lynas Rare Earths shares a buy, sell, or hold now?

Read more »

Businessman planning and analysing investment data.
Materials Shares

Forget PLS, this ASX lithium stock could rise 80%

Is this lithium miner about to roar higher? Here's what Bell Potter is predicting.

Read more »

Couple using their digital tablet together.
Materials Shares

Orica updates on North American supply and land sales

Orica secures key North American supply and updates on land sales, supporting future growth and shareholder value.

Read more »

Man analysing data on his laptop.
Materials Shares

Forget BHP and buy this ASX copper stock

Bell Potter thinks there could be big returns on offer from this stock.

Read more »

A brightly coloured graphic with a silver square showing the abbreviation Li and the word Lithium to represent lithium ASX shares such as Core Lithium with small coloured battery graphics surrounding
Materials Shares

Why are Core Lithium shares crashing 8% on Thursday?

A busy morning of announcements has investors taking notice.

Read more »

a man clasps his hand to his forehead as he looks down at his phone and grimaces with a pained expression on his face as he watches the Pilbara Minerals share price continue to fall
Materials Shares

PLS shares have surged 85% in a year. So why are short sellers circling?

Could the bears be getting ahead of themselves?

Read more »

Senior farmer in overalls standing beside flood area on field.
Materials Shares

Why is this ASX share crashing 8% on Wednesday?

A positive earnings outlook hasn't stopped the selling.

Read more »

A man and woman sit next to each other looking at each other and feeling excited and surprised after reading good news about their shares on a laptop.
Materials Shares

3 reasons to buy BHP shares for 2027

I take a closer look at what could keep this mining giant growing well beyond 2027.

Read more »