Popular News From Popular Sites: BHP announces spin-off plan, holds off on share buyback

Tuesday, August 19, 2014

BHP announces spin-off plan, holds off on share buyback

A promotional sign adorns a stage at a BHP Billiton function in central Sydney By Sonali Paul MELBOURNE (Reuters) - The world's biggest mining company, BHP Billiton , announced plans to spin off businesses worth an estimated $16 billion (10 billion pounds), most of them acquired in its 2001 merger with Billiton, to focus on its most profitable activities. Chief Executive Andrew Mackenzie, in the top job for just over a year, said the widely expected move to simplify BHP around the "four pillars" of iron ore, copper, coal and petroleum would spur cashflow growth and boost returns. The spin-off company, dubbed NewCo for now, will bundle BHP's aluminium, manganese, Cerro Matoso nickel in Colombia, South African energy coal and some Australian metallurgical coal assets and the Cannington silver, lead and zinc mine. BHP has added Cerro Matoso, which is a better nickel asset than its Nickel West division, and Illawara Coal," said David Radclyffe, an analyst with CLSA in Sydney.




Read More http://ift.tt/1BwHVME

No comments:

Post a Comment