BHP Group Limited (LSE:BHP) said the all-stock merger of its oil and gas portfolio with Woodside Energy Group was completed on Wednesday.
BHP received 914.8mln Woodside shares for the sale of BHP Petroleum, while the former paid the in specie dividend and distributed the latter’s shares to eligible BHP shareholders.
As part of completion, BHP made a net cash payment of roughly US$700mln to Woodside, as well as leaving around US$300mln of cash in the BHP Petroleum bank accounts to fund ongoing operations.
This, however, was still subject to a customary post-completion review that may result in an adjustment to the amount paid.
Woodside’s closing price on the Australian Stock Exchange (ASX) on Tuesday was A$29.76, meaning the in specie dividend was approximately A$5.38, with A$2.30 of franking credits per BHP share.
“The merger of our petroleum assets with Woodside creates a global energy company with the scale and opportunity to help supply the energy needed for global growth and development in a rapidly decarbonising world,” Mike Henry, BHP chief executive, said.