Woodside Investors to Benefit from $40 Billion Merger with BHP Arm: KPMG

KPMG’s valuation of the combined group was below an estimates by UBS and Credit Suisse, at about AU$34.60 a share and AU$33 a share respectively, based on the banks’ current oil price outlooks.

Sonali Paul, Reuters

Australian gas producer Woodside Petroleum Ltd.’s agreed merger with BHP Group’s petroleum arm is in the best interest of its shareholders, an independent expert said, valuing the combined group at around $40 billion.

Global miner BHP agreed to hive off its petroleum business to Woodside last year in a nil-premium deal that will give BHP shareholders a 48% stake in the combined group and turn Woodside into a top 10 global independent oil and gas producer.

Accounting firm KPMG assessed the value of the combined group at between $37.2 billion and $42.3 billion, equating to a per share valuation of AU$26.25 to AU$29.81, which was equal to or more than its estimate of Woodside’s current per share value.

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