BHP catches WMC

The world’s largest mining company BHP Billiton (BHP-N) just got bigger, following the acquisition of base metal miner WMC Resources (WMC-N).

Shareholders holding 73% of WMC’s issued shares accepted BHP’s offer (of Australian $7.85, or US$5.93, per share).

On the last day of the offer, BHP also bought an additional 3.26% of WMC’s issued shares on the open market. BHP already owned 4.31% of the company through cash-settled swap contracts with Deutsche Bank.

The offer has been extended and will close late in the day on June 17 (Melbourne, Australia time).

The takeover offer, valued at Australian $9.2 billion (US$6.9 billion), trumped an earlier takeover bid by Switzerland’s Xstrata.

If BHP secures 90% of WMC’s shares (as it is expected to do) BHP will be able to secure the remaining shares on a compulsory basis and remove WMC from its listing on the stock exchange.

WMC ranks third in the world for nickel production and holds significant copper deposits, as well as almost 40% of the world’s known uranium resources (in Australia’s Olympic Dam deposit).

Changes to the composition of the WMC board are imminent.

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