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BHP unification information

BHP proposes to unify its corporate structure from two parent companies, with two share prices, into one under BHP Group Limited.

BHP Group Limited has recently proposed a plan to unify their corporate structure, between shares listed in the UK (BHP Group plc) and shares listed in Australia (BHP Group Ltd).

“Unification would provide a simpler corporate structure that would help BHP to be more agile and efficient, with improved flexibility to shape our portfolio for the future”

Source: BHP Unification factsheet

Regulatory approvals and shareholder vote

Pending final regulatory and Court approvals, BHP will unify its corporate structure from two parent companies into one company, BHP Group Limited.

Pending final regulatory and court approvals:  

  • The unification proposal will trigger a material uplift to the weighting of BHP Group Ltd (BHP AU) across its various S&P/ASX benchmarks.
  • After a market-wide consultation, S&P confirmed that it will upweight BHP AU effective "prior to the open of trading on 31 January 2022".
  • Other major index providers will also be upweighting their benchmarks.

What does this mean?

  • The necessary trading which will be required to reflect these index changes will be focused on Friday, 28 January 2022.
  • The ASX Closing Share Price Auction (CSPA) will determine the closing price of BHP AU, and it is where ASX anticipates seeing significantly higher trading volumes than normal.
  • As is standard practice, with stocks being upweighted, other securities in the same benchmark will be proportionately downweighted.
  • Therefore, investors may expect to see an increase in trading activity in and around the close on Friday, 28 January 2022, across other securities within the same benchmarks such as S&P/ASX200 and S&P/ASX300.
  • Please see the following market notice for further information.

Find out more