Woodside, BHP merger gets watchdog nod

The ACCC will not oppose Woodside’s plan to acquire BHP petroleum assets, clearing the way for two of WA’s largest natural gas suppliers to merge. 

In a statement published to the ASX, the ACCC said its review focused on the potential overlap of the supply of domestic natural gas in WA.

“We examined the proposed acquisition closely as it would combine two of the four largest domestic natural gas suppliers in Western Australia,” outgoing ACCC Chair Rod Sims said.

“We found that post acquisition, Woodside would continue to face competition from a range of suppliers of domestic gas, including major producers Chevron and Santos, and from several other smaller suppliers including Shell and ExxonMobil.

“Woodside’s share of domestic gas after the acquisition will be approximately 20 per cent,” Mr Sims said.

Completion of the merger is expected in the second quarter of the 2022 calendar year.

Under the deal, Woodside Petroleum shareholders would own 52 per cent of the new business, with existing BHP stakeholders controlling 48 per cent.

With Woodside’s current market capitalisation sitting at around $20.4 billion, the implied value for the new entity will be $39 billion.

Woodside shares are down 1.04 per cent to trade at $21.84.

BHP shares are down 0.9 per cent to trade at $40.69.