In Brief

BHP: London’s lost bauble

Anglo-Australian mining giant is shifting its primary stock-listing to Sydney 

Bad news for the FTSE 100, said Neil Hume in the Financial Times. The UK blue-chip index “is set to lose its biggest company”. The £137bn Anglo-Australian mining giant BHP is ditching its “dual-corporate structure”, which currently sees it listed as two separate companies on the London and Sydney stock exchanges, and shifting its “primary stock-listing to Australia”. 

The move marks “the most radical overhaul” to BHP’s business since it was formed in a merger two decades ago, said August Graham on PA Media. Some investors, notably the activist New York-based hedge fund Elliott Advisors, have been pushing for this “for years”, as a means of unlocking billions in value. 

Yet BHP’s already in the money, said Hume in the FT. This year’s commodities boom has delivered soaring profits of US$24.6bn, enabling it to deliver “a record final dividend” of $10.1bn. Moreover, CEO Mike Henry is making good progress shifting focus towards in-demand metals like copper and nickel, and “green commodities” – this week confirming a plan to merge BHP’s oil and gas business with Australia’s Woodside. 

The shift Down Under could yet hit a pothole. In 2018, the Anglo-Dutch giant Unilever dropped a comparable “unification” scheme involving relocation to Rotterdam, following pressure from London shareholders. A similar rebellion may now be fermenting over BHP. “For UK investors this sucks,” complained one investor. “This is a fantastic company.”

 

Recommended

Trip of the week: driving across the American desert
Grand Canyon
The big trip

Trip of the week: driving across the American desert

Recipe of the week: panzanella
Panzanella
On the menu

Recipe of the week: panzanella

Will Ukraine join the EU?
Ukrainian President Volodymyr Zelenskyy shakes hands with French President Emmanuel Macron after a press conference in Kyiv
Getting to grips with . . .

Will Ukraine join the EU?

Best properties: Scottish homes in glorious settings
Oldany Lodge and Farmhouse, Lochinver Lairg
The wish list

Best properties: Scottish homes in glorious settings

Popular articles

Are we heading for World War Three?
Ukrainian soldiers patrol on the frontline in Zolote, Ukraine
In Depth

Are we heading for World War Three?

Ten Things You Need to Know Today: 28 June 2022
10 Downing Street
Daily Briefing

Ten Things You Need to Know Today: 28 June 2022

The Mediterranean cities preparing for a tsunami
A tsunami in 2011 in Japan
Fact file

The Mediterranean cities preparing for a tsunami

The Week Footer Banner