Thanks Pete.maybe they are still untangling the complexities of the deal
just the portfolio shifts required by various ETFs will be immense , and then we will have the LICs trying to work out their moves
remember SOME are following the ESG fad , while others will be trying to re-estimate div. yields , and rebalancing the indexes
for instance would you really want a UK focused index fund with it lacking BHP PLC , and in the mess the UK is in not to mention how BP would have to re-invent itself , for the 'Green new deal '
i think key to the WPL deal is how many of the BHP move across to the new company .
but i guess time will tell
BUT if BHP keeps sliding ..... maybe i had better calculate a firm target price , just in case a market shock provides an opportunity , having that order in weeks early has worked for me before ( maybe it will again )
@Dona Ferentes you could be right. At least myself wrongly read or misread the bhp wpl news.Am I reading a few of these wrong? @Miner @Austwide . BHP and WPL aren't merging. BHP petroleum assets are going into wpl, and BHP shareholders are receiving WPL scrip so the new Woodside will be much bigger with new and old, a lot of overlapping, shareholders. Among the details not yet revealed is what proportion will BHP assets be in the new WPL .
now i MIGHT be wrong here but as i read it , you are only getting BHP Petroleum ( which apparently includes gas assets ) which is only FIVE PERCENT of BHP ( either the total or just BHP Ltd )If I am WPL holder, would not be a great deal for me considering highest risk on Pluto and others will be reduced. BHP has lots of cash and hopefully after one and two years teething problem post merger, it will be a great giant . Yes, immediate post merger gives punters opportunity to buy BHP . Allan Gray is however very prudent fundi and what I do not know if the comment from Simon, is from BHP perspective and what are they telling to their clients holding WPL ?
Do hold BHP and looking for sneaking into WPL
and apologies to Austwide, it was aus_trader I was replying to.I think @Dona Ferentes is on the money that this is more of a re-structure/merger of assets than a merger of two companies.
So any reason why WPL unlikely to be a winner if you share the view of being bullish on Oil/Gas ?I'm actually quite bullish on oil and gas.
With the present disorder it will take half a century to electrify vehicles.
Who knows another mini Ice Age could even make a need for a warmer planet.
The futurists seem too set in their predictions for my liking.
WPL could be a an unlikely winner.
gg
As someone with more knowledge on the physical side when it comes to energy than of corporate finances, I suspect you're right but I also question why.IMO oil/gas companies will go the way of AGL and the dodo bird.
Bhp just following the narrative.. let's get green ,dump fossil fuel...but bhp is well known for magistral **** up in term of narrative based decisionsAs someone with more knowledge on the physical side when it comes to energy than of corporate finances, I suspect you're right but I also question why.
Physically there's a major push to "electrify everything" and that means more electricity not less as transport, space heating and so on ultimately goes electric. The means of generating electricity is changing but electricity itself sure isn't going away.
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Short term, and by that I mean the next few years, bulk gas consumption is also clearly trending up globally. Apart from 2020 (pandemic) and 2009 (GFC downturn) gas volumes globally have gone up every year for a very long time.
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Also there's not yet a decline in physical oil consumption if we exclude pandemic-related factors of grounded aircraft etc.
If these companies aren't making money out of that then to me that raises some questions as to management decisions and so on. Ultimately a declining market will shrink the oil and gas business yes but it hasn't happened yet, the industry's very near its all time high (and would be at an actual high if not for the pandemic).
I was using "unlikely" in it's broad adjectival rather than adverbial sense.So any reason why WPL unlikely to be a winner if you share the view of being bullish on Oil/Gas ?
On that point we can agree..but what will be the effect of a Labour Green win on an Australian based oil producer?Gold and Oil are my contrarian picks over the next 10 years.
Yes mate@Dona Ferentes Am I reading a few of these wrong? @Miner @Austwide . BHP and WPL aren't merging.
You are, I haven't posted in this thread, but did say rumour about A2M being taken over by Nestle.
The Greens are a worry.On that point we can agree..but what will be the effect of a Labour Green win on an Australian based oil producer?
do not forget coal, unless mistaken they still have a lot of it ;Great, thought provoking discussion everyone, learnt a lot more about both companies.
So BHP's been selling off assets for a long time since I've followed it's progress. One of the biggest being those non-core commodities according to BHP to South32 Ltd (S32) via spin off.
Now selling the Oil/Gas assets to WPL.
So what's actually really worthwhile inside of BHP now ?
In my mind it was always the most diversified mining house on the asx and I hold a few shares. Is it becoming a non-diversified Iron Ore play with some Copper/Gold and U3O8 from Olympic Dam thrown in ?
After all this discussion, starting to worry about it's diversification and holding onto those shares. The falls of yesterday and today weighing in too ?
My take is that its BHP Petroleum so oil and gas assets thus I'd say, does not include any coal assets.Am I reading a few of these wrong? @Miner @Austwide . BHP and WPL aren't merging. BHP petroleum assets are going into wpl, and BHP shareholders are receiving WPL scrip so the new Woodside will be much bigger with new and old, a lot of overlapping, shareholders. Among the details not yet revealed is what proportion will BHP assets be in the new WPL .
By Eva Brocklehurst
As BHP Group ((BHP)) makes a concerted effort to lift its environmental credentials, the deal that many suspected would be forthcoming has been announced: the merger of BHP Petroleum with Woodside Petroleum ((WPL)). {my bold}
Citi had been forming the view that BHP and oil were not well suited, recently speculating that Woodside could take over the Australian petroleum assets. The broker believes, while fast paybacks are possible for brownfield oil expansions such as Mad Dog 2 and Atlantis 3, this is more difficult for greenfield developments such as Trion and T&T North.
The offloading of the petroleum assets will be undertaken via an all-scrip merger with Woodside Petroleum, with Woodside shareholders owning 52% and BHP shareholders receiving Woodside shares to the equivalent of 48% of the enlarged base.
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