BHP board to consider asset demerger

The board of the world’s largest miner, BHP Billiton, will consider a demerger of selected assets when it meets next week, the company has said in a statement.

According to the statement, the board has been studying various structural alternatives to simplify its business with a demerger of assets its preferred option.

“We believe that a portfolio focused on our major iron ore, copper, coal and petroleum assets would retain the benefits of diversification, generate stronger cash flow and a superior return on investment,” the company said. “By increasing our focus on these four pillars, with potash as a potential fifth, we will be able to more quickly improve the productivity and performance of our largest businesses.”

More information is expected to be released with the company’s full year results but speculation from the Australian media sees a demerger of BHP’s South African businesses and Australian nickel, aluminium and manganese assets with the company headquartered in Perth.

Written by Jonathan Rowland

Read the article online at: https://www.worldcoal.com/mining/15082014/world-coal-bhp-billiton-board-to-consider-asset-demerger-1211/