BHP Billiton Ltd. (BHP) announced completion of its acquisition of U.S.-based Petrohawk Energy Corporation (HK). The takeover was completed by BHP through a short-form merger of its wholly owned subsidiary with and into Petrohawk, under the Delaware law. The merger was closed with Petrohawk being the surviving corporation as a wholly owned subsidiary of BHP Billiton.
This merger was the final step of $12.1 billion acquisition process followed the previously announced completion of the tender offer by BHP Billiton to acquire all outstanding shares of common stock of Petrohawk.
Of late, BHP 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.
The acquisition will provide BHP with greater access to U.S. shale gas assets as well as assets of about 1 million acres in Texas and Louisiana, with an estimated production of 158,000 barrels of oil equivalent each day in 2011. Moreover, with this acquisition, BHP is anticipated to deliver high quality compound annual growth of 10% in production volumes.
Moreover, Petrohawk's sizeable U.S. workforce will be joining BHP’s team of talented professionals, which is expected to lead business growth over the long term.
Upon completion of the take-over, Petrohawk requested the New York Stock Exchange to delist Petrohawk's common stock from the NYSE, therefore take necessary steps with the U.S. Securities and Exchange Commission for the purpose.
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, as a part of the company’s key investment strategies, is expected to sustain the company’s commitment to its long-term growth. The company competes directly with its peers, such as Alcoa. Inc (AA), Vale S.A (VALE).
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