BHP confirmed on Monday that it has initiated a strategic review of its petroleum business and is in talks about a potential merger of the unit with Australia’s Woodside Petroleum.
Responding to press speculation, the company noted that it regularly reviews its portfolio of assets to seek opportunities to maximise long-term shareholder value.
BHP said a number of options are being evaluated.
“One option is a potential merger of the Petroleum business with Woodside Petroleum and a distribution of Woodside shares to BHP shareholders. We confirm that we have been in discussions with Woodside,” it said.
While talks between the two are currently progressing, no agreement has been reached on any such transaction BHP added.
“A further announcement will be made as and when appropriate.”
In a separate statement, Woodside said: “Woodside continuously reviews the composition of its asset portfolio and opportunities to create and deliver value for shareholders.
“Woodside is engaged in discussions with BHP regarding a potential merger involving BHP’s entire petroleum business through a distribution of Woodside shares to BHP shareholders.”
