By Alexis Flynn
LONDON--BHP Billiton (BHP) will hand complete control of its
new, demerged entity to shareholders, ending all formal links
between the mining giant and the near-$10 billion company that will
be created as a result of a spin-off announced Tuesday.
"There will be no attempt to retain control," said Chief
Executive Andrew Mackenzie, ruling out the possibility that BHP
Billiton could seek to maintain a stake in the new company.
"It will be a 100%, clean separation when we announce it. We
have no intention of retaining an equity component," said Mr.
Mackenzie. Instead, BHP Billiton's shareholders will receive a
proportionate stake in the new company.
BHP Billiton announced its decision to unwind one of the biggest
mergers in mining history earlier Tuesday, with plans to spin off
most of the mines BHP acquired when it fused with Billiton in 2001
into a new entity, provisionally nicknamed "NewCo."
NewCo's assets--nickel, aluminum, manganese, silver and some
coal mines--make up roughly half of BHP Billiton but account for
less than 10% of the company's profits. Mr. Mackenzie said he hopes
that a leaner BHP Billiton will allow it to hone its focus on the
parts of its business that generate the most cash.
Write to Alexis Flynn at Alexis.Flynn@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires