BHP Wants to Spin Off Nickel, Manganese and Aluminum Assets

Reuters reported that BHP Billiton Ltd. (ASX:BHP,NYSE:BHP,LSE:BLT) wants to spin off its unwanted assets, including its aluminum, nickel and manganese assets. The move could result in the formation of a separate business potentially worth $14 billion.

As quoted in the market news:

BHP said its board was considering a spin-off at meetings ahead of its annual results announcement next week. An Australian newspaper said those plans were well advanced and would include the Nickel West business that the world’s biggest miner has been trying to sell.

‘A demerger of a selection of assets is our preferred option,’ the company, which has a market capitalisation of $185 billion, said in a statement to the Australian stock exchange.

The company has long aimed to sell or spin off its manganese, aluminium and nickel assets, which contribute little to its earnings. Simplifying the company would ‘generate stronger growth in cash flow and a superior return on investment’, BHP said on Friday.

Click here to read the full Reuters report.