Deals
Biggest Miner Adds $10 Billion in Boost to M&A War Chest
- BHP Billiton CEO sees dividend cut increasing deal firepower
- Oil and copper assets are key targets for acquisitions: BHP
What’s Behind BHP’s Dividend Cut?
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BHP Billiton Ltd. gave notice Tuesday that it’s on the hunt for assets after tipping an estimated $10 billion extra cash into its coffers by cutting its dividend and capital spending.
The world’s biggest mining company bowed to pressure from investors and credit ratings agencies by lowering its dividend payout for the first time in 15 years after the rout in commodities saw first-half profit tumble 92 percent. A new dividend policy will also give BHP more M&A firepower, with oil and copper the main targets for any acquisitions, Chief Executive Officer Andrew Mackenzie told reporters on a call from Melbourne.