BHP to delist in London as it centralises in Australia

Australian resources firm BHP will unify into an Australia-based firm with its delisting from the London Stock Exchange (LSE) at the end of this month, as part of a plan to simplify its corporate structure.

The dual corporate structure BHP was created in 2001 following the merger of BHP and South African mining firm Billiton. The dual corporate structure entailed two separate legal entities, even though the firm operated as a single economic entity.

US investor Elliott Advisors wanted BHP to consolidate its share listings into one corporate entity, although it suggested BHP have its primary listing in London. This option was opposed by the Australian government given the firm's history and economic importance to Australia. BHP is Australia's second-largest iron ore producer, the largest hard coking coal exporter and has interests in copper and nickel. It plans to develop a potash business in Canada.

The corporate unification of BHP comes ahead of the demerger of its upstream petroleum business with Australian independent Woodside Petroleum that is expected to be completed during April-June. It also follows the demerger of many of the assets owned by Billiton at the time of the 2001 merger through the spin-off of South32 in May 2015.

By Kevin Morrison