Australia’s Woodside snares BHP oil, gas business in $28 bln merger – Reuters

Australia’s Woodside snares BHP oil, gas business in $28 bln merger – Reuters

MELBOURNE, Aug 17 (Reuters) - BHP Group (BHP.AX) has agreed to sell its petroleum business to Woodside Petroleum in a merger to create a top 10 independent oil and gas producer worth A$38.5 billion ($28 billion) with growth assets in Australia and the Americas.

BHP's exit from petroleum, which made up just 5% of its annual earnings, speeds up its exit from fossil fuels amid pressure from environmentally conscious investors. BHP CEO Mike Henry, however, said the company remained committed to metallurgical coal used in steel making.

BHP shareholders will be paid in Woodside stock, giving BHP investors a 48% stake in the merged group.