If the trailer whetted people’s appetite then the blockbuster announcement has them swooning in the aisles.
Just 24 hours after it confirmed it was in talks over an exit from the oil and gas industry, mining giant BHP takes the headlines again as it confirms its plans to merge its oil assets with Woodside Petroleum.
“The market is clearly excited about the move and while investors are set to get shares in the combined venture rather than an immediate cash payout, this will give them the option of selling the shares should they choose and realising value that way,” says Russ Mould from AJ Bell.
“The news comes alongside results which encompass a big capital return to shareholders and a plan to tidy up the company’s corporate structure with its main listing widely expected to be in Australia and the green light on a new potash project.
“BHP has a clear strategy now of focusing on future-proofed commodities which are part of the transition away from fossil fuels or in other words being part of the solution rather than part of the problem and it’s an approach which is winning favour from the market.
“CEO Mike Henry is to be commended for the speed at which he is executing the plan having started just before the global pandemic hit.”