Woodside Petroleum’s merger with the petroleum business of BHP Group has been given the seal of approval by an independent expert.
Ahead of a Woodside shareholder vote on the deal on 19 May, KPMG Corporate Finance said in a report that the deal was in the best interests of Woodside shareholders.
“Whilst there are various factors that may not be attractive to Woodside shareholders, the benefits of holding a share in the merged group are sufficient to conclude that Woodside shareholders will be, on balance, better off by approving the proposed transition,” it said.
KPMG said that a Woodside share would have an underlying value of $23.09 to $26.42 if the merger did not proceed, versus between $25.25 and $29.81 if it did.
If the merger is approved next month, shareholders of Perth-based Woodside will hold 5% of the merged company, while BHP shareholders will own the rest.
If all goes to plan, the deal is expected to complete on 1 June.
