Woodside Shareholders Greenlight BHP Merger

Woodside announced Thursday that its shareholders voted to approve its proposed merger with the petroleum business of BHP Group Limited at the company’s Annual General Meeting, which was held today.

According to the company, 98.66 percent of the votes submitted were in favor of the merger. All conditions precedent necessary to implement the merger that require a positive action or event in order to be satisfied have now been satisfied or waived, Woodside noted. The company outlined that the merger remains subject to certain conditions precedent that, in the absence of an unforeseen event, will be deemed to be satisfied on or before May 31, 2022.

Woodside said it expects completion of the merger to occur on June 1, 2022, and added that the new Woodside shares to be issued to or for the benefit of BHP shareholders are expected to commence trading on the Australian Securities Exchange (ASX) on June 2, 2022. Trading of Woodside American Depositary Shares on the New York Stock Exchange is expected to commence on the same day, while trading of Woodside shares on the Main Market for listed securities of the London Stock Exchange is expected to commence on June 6, 2022.

“We believe the strategic and financial case for the proposed merger is compelling,” Woodside Chairman Richard Goyder said in an AGM address.

“It will bring together the best of both organizations to create a top 10 global independent energy company with the scale, diversity, and resilience to provide value to shareholders and navigate the energy transition,” he added in the address.

“We are also expecting to deliver significant synergies as we bring both businesses together,” Goyder continued.

On November 22, 2021, Woodside announced that it and BHP Group had signed a binding share sale agreement for the merger of BHP’s oil and gas portfolio with Woodside. Under the deal, Woodside will acquire the entire share capital of BHP Petroleum International Pty Ltd in exchange for new Woodside shares, Woodside highlighted in a statement at the time. The signing of the agreement followed a merger commitment deed announced on August 17, 2021.

Woodside notes on its website that the merger will create a top 10 global LNG producer and transform the company by doubling production, diversifying the portfolio and offering multiple growth opportunities.

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