Woodside has confirmed speculations about a potential merger with BHP Petroleum through a distribution of Woodside shares to BHP shareholders.
Woodside said discussions with BHP were underway regarding a merger involving the company’s entire petroleum business.
“These discussions are ongoing,” the company said in a statement.
“Woodside will continue to update the market in accordance with its continuous disclosure obligations.”
BHP said a merger of its Petroleum Business with Woodside was one of a number of options under consideration.
“BHP confirms that we have initiated a strategic review of our Petroleum business to re-assess its position and long-term strategic fit in the BHP portfolio”, BHP told the ASX.
“A number of options are being evaluated. One option is a potential merger of the Petroleum business with Woodside Petroleum and a distribution of Woodside shares to BHP shareholders.
“We confirm that we have been in discussions with Woodside. While discussions between the parties are currently progressing, no agreement has been reached on any such transaction.”