BHP to Combine Petroleum Unit With Woodside, End Dual Listing in London

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SYDNEY—BHP Group Ltd. said it will combine its oil-and-gas business with Australia’s Woodside Petroleum Ltd. in an all-stock deal, adding that it would end its dual listing in London.

BHP on Tuesday also approved a $5.7 billion project to mine potash in Canada, as it adjusts to the prospect of a lower-carbon world, where old profit drivers such as petroleum and thermal coal are less appealing.

The miner said its shareholders will own 48% of the expanded Woodside, which will become one of the world’s 10 largest producers of liquefied natural gas. Combining the businesses is forecast to generate more than $400 million in annual savings, the companies said in a joint statement.

“The merger of our petroleum assets with Woodside will create an organization with the scale, capability and expertise to meet global demand for key oil-and-gas resources the world will need over the energy transition,” said BHP Chief Executive Mike Henry.

The miner said Tuesday it would end its dual listing to unify under its existing Australian parent. Holders of its PLC stock in London will be given Australian Ltd stock on a one-for-one basis, the company said.

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