🔴 LIVE: The Secrets of ProPicks AI Success Revealed + November’s List FREEWatch Now

Australia's BHP heads back to roots, drops Billiton from its name

Published 15/05/2017, 12:00 am
© Reuters.  Australia's BHP heads back to roots, drops Billiton from its name
BHP
-
BHPB
-
S32
-

By James Regan

SYDNEY, May 15 (Reuters) - One of the last reminders of a merger 16 years ago that created the world's biggest mining house will be erased on Monday when BHP Billiton BHP.AX BLT.L changes its name back to just BHP.

Dropping the Billiton reflects a move to simplify its corporate structure, the company said, and return to its founding roots in Australia more than a century ago, when it was known as Broken Hill Proprietary Co Ltd.

BHP, which has operations in 25 countries, will retain its dual listings in Australia and London.

BHP head of external affairs Geoff Healy dismissed suggestions that the name-cropping is in response to a call by activist shareholder Elliott Management for the miner to scrap its dual-listing mechanism in Sydney and London and spin off assets, specifically its U.S. shale oil unit. is zero connection with Elliott's proposals," Healy said. "We've been doing this for 18 months."

The company is spending an initial A$10 million ($7.4 million) on an advertising campaign in Australia to promote the shortened name.

The merger of BHP and South African mining house Billiton in June 2001 created a company with an initial enterprise value of $38 billion. The joining, however, came to be widely regarded by analysts as value-destructive, even during the China-fuelled boom years at the end of the last decade.

Most of the original Billiton assets were included in a 2015 spin-off, South32 S32.AX , and no longer contribute to the company's bottom line.

South32 was initially derided as a compilation of BHP Billiton's most unwanted assets, but it has frequently outperformed the parent company.

($1 = 1.3528 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.