BHP Billiton

Masa Serdarevic

If you thought a deal worth $39bn would satisfy even the most acquisition-happy chief exec, you’d probably be wrong in the case of Marius Kloppers. BHP Billiton’s chief exec is throught to be looking at a major oil and gas acquisition at the same time as working on the multi-billion deal to buy Canada’s Potash Corp, according to a story in The Australian on Thursday. Read more

Small wonder there’s a mini mergers and acquisitions boom at the moment – just at look at the cost of borrowing for big, stable companies like BHP Billiton. Citigroup reckons the $45bn credit facility put in place by the miner to finance its hostile offer for PotashCorp is likely to be just 3-4 per cent. Obviously, this figure needs to be put in the context of sub-3 per cent 10-year US government bond yields and the Fed’s near zero interest rate.  Read more