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BHP Group Ltd (BHP.AX) has delivered a A$9.6 billion ($6.5 billion) bid for copper and gold producer OZ Minerals (OZL.AX) as the mining major moves to take advantage of rising global demand for metals used in clean energy and electric cars.
https://www.reuters.com/markets/commodities/australias-oz-minerals-grants-bhp-due-diligence-improved-64-bln-offer-2022-11-17/
Seav,intresting news there I wonder if they will offload here now
A 50% premium to the pre-offer price. Apparently, BHP are not prepared to chase deals!
Addicknt have they not accepted the offer?
Bubble, yes they have.
Addicknt thought I read it correctly lol!:)
If you think BHP are the most likely buyer for Solg, then I thought it would be better if they had failed in their bid for Oz. Henry keeps going on about capital discipline, not overpaying etc etc. He's in danger of just doing the classic commodity cycle thing of overpaying during the last boom, refusing to invest now due to the previous overpayment, then missing out on cheaper opportunities and then having to overpay again at the peak of the next boom. And so on...
If BHP had missed out on Noront and then missed out on Oz Minerals as well, I think they would have been under a lot of pressure to secure the next target or they start to look like they can't close any deal. Which would hopefully have led to them snatching at Solg and possibly paying up (or overpaying) in order to ensure they were successful.
As it stands if the Oz deal does close now to some degree it vindicates Henry's stance of being selective, starting low, showing some discipline etc and takes the pressure off them to bag another asset any time soon.
Having said that, Sangha seems to be suggesting they will flog Cascabel to someone else entirely so maybe we shouldn't worry too much about BHP anyhow.
I think Solg need to just forget about BHP.. they are focused elsewhere… our management have sat around waiting for BHP to move on us long enough… more than long enough..
Crack on with monetising with anyone but BHP..
rcgl, now we're in the hands of Sangha an co I am much more confident we can escape the slow strangulation by BHP. There are plenty of other fish in the sea. Who knows, we may ultimately end up in their hands, but they're not going to have it all their own way. I have a feeling Tubby Cuzzy may have rolled-over much more readily.
Orthern, addicknt - agree with both those points.
I know Sangha said the last 6 years were wasted but I think a lot of it was just waiting for NCM or more likely BHP to make an offer to buy Solg out, especially once BHP's lock in period ended. I think Mather wanted to string it out until it happened. Let's face it, pretty much everyone here and most of the press thought that was what would happen, so was it so wrong of Solg to think that too.
As it turns out, that hasn't happened and BHP haven't made their move so now Sangha and co are taking matters into their own hands and will go and find someone else to buy it.
RCGL yep or use another bid ( maybe even one they’re behind ) to flush em out
Our board let rip into BHP when they knew they were going for Oz minerals, so called in the know people, contractors at Oz who gave them the nod.
Anyway, tier 1’s are in demand and our time will come, hopefully Solgold now starts putting all their geological updates together and release a brilliant RNS.
Atb
Agree, bit disappointed by the Oz Minerals deal, especially management backing it when majority of analysts had expected nearer $30 to $40 level. BHP have done well there, $28 is a steal. It's good value for BHP shareholders and not great for Oz Minerals. Shame no other party came in to counter offer or get involved. I expected a better fight on that one.
Does that rule out a BHP bid on SOLG? Possibly.
Are there many other interested parties out there... I believe so!
Is Ecuador too big a leap for NCM... I think so, so am ruling them out.
Well to production then or BHP to get it at 30p. Do you think one might be better off to take a hefty loss on solg and buy BHP?
T …. Would rather (if BHP are to bid) it wasn’t the first bid here …. A bid will come but from who ?
Well according to a few sources BHP have got Oz Minerals cheap. Most expected it to be bid into the 30's. Now some might say that even BHP might have been ready for the $30+ mark on Oz deal. So in theory, BHP might have some decent change left over that they were not expecting like $1bln to $2bln.!
Now I wonder whether BHP were waiting upon this Oz Minerals deal to see how it goes before deciding on making a SOLG bid??
There are a few ways you can look at this. It could be the starter to a bid on SOLG or it could be the end of any such plans. Eitherway, BHP got off light so are more cashed up than they expected imho.