​BHP’s new company to list in London

BHP has backflipped on its decision to not list its newly demerged assets in London, after a shareholder backlash.

The newly listed assets were originally slated to only list in Australia and South Africa, with BHP CEO Andrew Mackenzie initially explaining that an additional London listing would be too complex and expensive for the new miner.

However following market concerns it has now reversed this decision.

“We have been pleased by the support for the de-merger and the level of interest investors have shown in the new company,” BHP chairman Jacques Nasser stated, according to Bloomberg.

“Given the level of interest, a London listing is being studied on top of those planned in Sydney and Johannesburg,” Nasser said.

An analyst explained to Bloomberg that there was rising concern that UK shareholders would not be mandated to hold the new spinoff, and would have to sell their listing at possibly reduced levels.

This is the second time this month that shareholder revolts have seen major miners change course in regards to demergers and listings.

AngloGold Ashanti decided to not split the company only a week after announcing plans to spin out its non-African assets, stating that while “there has been broad support for the strategic logic of the restructuring a number of shareholders have expressed concerns about certain aspects of the proposed transactions, in particular the quantum of the equity capital raising needed to enable the restructuring to be implemented in accordance with regulatory and other requirements

BHP announced the demerger of a number of assets earlier this year, which are understood to be valued at up to US$15 billion.

At the time Mackenzie stated that BHP will retain its four pillars of iron ore, copper, coal, and petroleum, which are comprised of 19 assets and accounted for 96 per cent of the miner’s underlying EBIT in 2014.

To see a full breakdown of BHP’s demerger, and which Australian assets will be affected click here.

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