Anglo-Australian mining giant, BHP Billiton Ltd (BHP) and Petrohawk Energy Corporation (HK) received final regulatory approval from the Committee on Foreign Investment in the U.S. ("CFIUS") on the tender offer relating to the merger agreement between the above two companies. The approval was based on the committee’s conclusion that there are no national security issues of concern regarding the merger transactions between BHP Billiton and Petrohawk.
BHP announced the acquisition of the U.S. natural-gas company, Petrohawk Energy for a whopping $12.1 billion in July 2011. The documents related to the tender offer have been filed with the U.S. Securities and Exchange Commission (the “SEC”). However, on 22 July 2011, BHP Billiton and Petrohawk received notice from the U.S. Federal Trade Commission regarding the early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
All regulatory approval conditions to the tender offer thereafter have been satisfied and CFIUS has signaled the final go-ahead with the merger, after considering BHP Billiton's tender offer for all issued and outstanding shares of common stock of Petrohawk for US$38.75 per share in cash. The tender offer has been unanimously recommended by Petrohawk and made pursuant to the merger agreement between BHP Billiton and Petrohawk.
The tender offer is scheduled to expire on 19 August 2011 at midnight, according to the New York City time. However, such expiry is subject to any extension of termination of the tender offer in accordance with the rules and regulations of the SEC as well as the merger agreement.
BHP Billiton is one of the world’s largest diversified resource companies operating in mineral exploration, production and processing, oil and gas exploration and development, and steel production and merchandising. The merger is expected to sustain the company’s commitment to its long-term growth through the key investment strategies. The company competes directly with its peers, such as Alcoa. Inc (AA), Vale S.A (VALE).
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