BHP CEO: Future M&A Dependent On Opportunities, Not Balance Sheet
August 24 2011 - 9:10AM
Dow Jones News
Mining titan BHP Billiton Ltd. (BHP) has the capacity to pursue
further sizable acquisitions following its purchase of U.S. shale
gas company Petrohawk Energy Corp. (HK) but is limited by targets
that fit its investment criteria, the company's chief executive
said Wednesday.
The "balance sheet has got capacity, but I think opportunity has
been the limiting factor," Marius Kloppers told reporters after the
Anglo-Australian mining company reported an 86% increase in
full-year net profit.
He said that out of iron ore, coking coal, copper and oil--the
four major contributors to its profit line--the latter two were
products where there was more scope to execute sizable deals.
"Major acquisitions from a regulatory perspective in iron ore"
and coking coal are difficult, Kloppers said.
BHP and Rio Tinto PLC (RIO) tried to create an iron ore joint
venture by combining their operations in the Pilbara region of
Western Australia, but the proposal was scuppered in October 2010
after both companies struggled to get the necessary regulatory
approval.
Kloppers said there was more scope to execute major deals in
oil, potash and base metals such as copper.
Iron ore, coking coal, copper and petroleum account for 90% of
the company's profit, he said.
-By Alex MacDonald, Dow Jones Newswires; +44 (0)20 7842 9328;
alex.macdonald@dowjones.com
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