BHP clears final hurdle to acquire all OZ Minerals shares. What's next for investors?

Today will likely be the last day OZ Minerals shares trade on the ASX.

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Key points
  • BHP's takeover of copper miner OZ Minerals has become legally effective today
  • OZ Minerals shares are expected to cease trading as of Tuesday's close with the scheme set to be implemented next month
  • Those invested in the copper miner's shares will receive a $1.75 franked dividend and $26.50 cash for their holding 

In exciting news for merger and acquisition fans, BHP Group Ltd (ASX: BHP)'s plan to takeover copper share OZ Minerals Ltd (ASX: OZL) cleared its final hurdle on Monday.

The scheme was granted the go-ahead by the Federal Court of Australia yesterday, just days after the takeover target's shareholders gave the $9.6 billion acquisition the thumbs up.  

Today, it officially became effective. But what does that mean for shareholders? Let's take a look.

Two men in hard hats and high visibility jackets look together at a laptop screen at a mine site.

Image source: Getty Images

BHP set to acquire all OZ Minerals shares

Today might be bittersweet for those invested in OZ Minerals as trading of its shares comes to a close ahead of BHP's takeover.

The copper miner expects its shares will be suspended when the ASX closes on Tuesday, with the scheme to be implemented on 2 May.

BHP first put forward an all-cash $25 per share bid for OZ Minerals in August 2022.

That offer was later upped to $28.25 per share in cash, less a $1.75 per share dividend declared by the takeover target last week. The dividend – which includes 75 cents of franking credits – is expected to be paid on 2 May.

Shareholders were given their chance to vote on the takeover on Thursday. Of those who cast a vote, nearly 98% were in favour of the acquisition.

OZ Minerals produces copper at two South Australian mines – Prominent Hill and Carrapateena. Both are located nearby BHP's Olympic Dam copper project.

The OZ Minerals share price is trading in the green on what is expected to be its last active session. The stock is swapping hands for $28.20 at the time of writing, 0.07% higher than its previous close.

Meanwhile, the BHP share price is up 0.47% at $46.83.

And the pair aren't the only ASX miners to benefit from the takeover.

Bellevue Gold Ltd (ASX: BGL) could also gain some advantage. The gold mining company will take OZ Minerals' place on the S&P/ASX 200 Index (ASX: XJO) before tomorrow's open.

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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