BHP Billiton's $6.4 Billion Takeover Bid Approved by Oz Minerals Shareholders

Top global miner BHP Billiton Group has unsurprisingly won the backing of Oz Minerals shareholders to go ahead with its acquisition of the Australian copper and gold producer for A$9.6 billion ($6.4 billion), according to foreign media reports.

At a general meeting in Adelaide on April 13, about 78.9 percent of proxies representing Oz Minerals' investors voted in favour of BHP's terms, including a cash offer of A$26.50 per share and a special dividend of A$1.75 per share to be paid to Oz Minerals' investors.

The deal will add to BHP Billiton's copper reserves and boost its nickel output expectations. The company will acquire Oz Minerals' Carapateena copper mine, which is near BHP Billiton's Olympic Dam copper mine in south Australia.

Strategically, the deal will also boost BHP Billiton's nickel supply through Oz Minerals' West Musgrave nickel project in West Australia whose customers include electric car maker Tesla.

The deal was approved by the Vietnam Competition and Consumer Authority on April 11. Earlier this year, in February, OZ Minerals also received approval for the proposed acquisition from Brazil's competition regulator, the Administrative Council for Economic Protection.

The final regulatory hurdle in the current deal is the approval of the Federal Court of Australia, which is scheduled to make a decision on April 17. If the transaction is approved as expected, Oz Minerals' shares will be suspended from trading on April 18. Oz Minerals' board of directors had previously unanimously approved BHP Billiton's takeover bid.