BHP Billiton Open to New Acquisitions Following Demerger

The Sydney Morning Herald reported that BHP Billiton (ASX:BHP,NYSE:BHP,LSE:BLT) could be open to new acquisitions following the recent demerger.

As quoted in the market news:

Just over 98 per cent of BHP shareholders voted in favour of the demerger at a meeting in Perth on Wednesday evening, ensuring that the new company, South32, would begin trading on the ASX this month.

BHP chief executive Andrew Mackenzie said the 98.05 per cent approval rate was a “strong vote of confidence” in the strategic direction of the two companies and that BHP would be left with a “very high-class, super distinctive portfolio” of iron ore, copper, coal, petroleum and potash.

Despite succeeding in his desire to shrink the company down to its “core” businesses, Mr Mackenzie indicated mergers and acquisitions were potentially back on the BHP agenda. BHP has not made a major acquisition since it punted US$20 billion on the US shale scene in 2011. While not a priority, Mr Mackenzie said the company was looking at options.

“We are not blind, we are open to any opportunity, and we certainly have the capability to do that within our balance sheet and should an opportunity arise, we are prepared to move, but it has tough competition to beat further investment in our own portfolio,” he said.

Mr Mackenzie indicated he would not be taking over an entire company but could be tempted to splurge on a single asset, particularly if its owners were in financial distress.

Click here to read the full Sydney Morning Herald report.