Blue Chip News BHP Billiton (BHP)

BHP Billiton BHP ASXBHP Billiton (BHP) the world’s largest diversified resources company, with a global portfolio of high quality assets and more than 100 operations in 25 countries.

It is an industry leader in most of the major commodities markets, including aluminium, coking and thermal coal, copper, manganese, iron ore, uranium, nickel, silver and titanium.  On top of this, BHP has sizeable interests in oil, gas, natural gas and diamonds.

BHP is also the largest company (by market cap) in the Australian share market, and is widely considered among the blue chip stocks.

On 15 November, BHP formally withdrew its US$39 billion offer for Potash Corp.  The offer’s withdrawal followed Canada’s recent decision to block the bid on grounds it did not provide a net benefit to the country.

BHP maintained that its bid would have resulted in a significant net benefit to Canada, with its concessions ranging from foregoing tax benefits in which was entitled to as well committing large sums on exploration and development.

However, BHP’s undertakings appeared to be too little too late, with Canadian authorities believed to have been unhappy with the extent of BHP’s concessions.

With the bid now cancelled, BHP has promised to return US$4.2 billion to its shareholders through a share buy-back program.

In addition, BHP plans to invest US$15 billion in its global business in the coming financial year.

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