By Alice Uribe
SYDNEY--BHP Group Ltd. and Woodside Petroleum Ltd. have signed a binding share sale agreement to merge BHP's oil-and-gas portfolio with Woodside.
BHP said Monday that Woodside will acquire the entire share capital of BHP Petroleum International Pty Ltd. in exchange for new Woodside shares.
The signing of the agreement follows a merger commitment deed that was announced on Aug. 17.
"On completion, the merger will create a global top 10 independent energy company by production and the largest energy company listed on the Australian Securities Exchange," BHP said in a regulatory filing.
"The combined company will have a high-margin oil portfolio, long-life LNG assets and the financial resilience to help supply the energy needed for global growth and development over the energy transition," it said.
Upon completion of the merger, Woodside will issue new shares expected to comprise approximately 48% of all the company's shares, on a post-issue basis, as consideration for the acquisition of BHP Petroleum.
Completion is targeted for the second quarter of the 2022 calendar year, subject to the satisfaction of conditions including regulatory and competition authorities' approval.
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(END) Dow Jones Newswires