The Rising Influence of Rising Affluence

[old man]

BHP may move on acquisitions per this pr. Link has pic of ceo.
John

http://www.heraldsun.com.au/business/bhp-may-move-on-acquisitions/story-e6frfh4f-1226009108668

BHP may move on acquisitions



Marius Kloppers

BHP Billiton Chief Marius Kloppers says oil and gas could represent great business opportunities in the future. Picture: Naashon Zalk/Bloomberg Source: Bloomberg

BHP-Billiton chief Marius Kloppers has hinted strongly that the minerals giant may turn its sights on takeovers in the oil and gas industry.

Mr Kloppers said yesterday that a move on possible targets might be 12 months off -- but they were not off his agenda.

"The oil and gas market is a very large one where there may be opportunities going forward," Mr Kloppers told ABC television.

His comments lend strength to reports the Big Australian may make a tilt at Woodside Petroleum after Royal Dutch Shell quit a third of its stake in the North-West Shelf enterprise for $3.3 billion last November.

BHP has long been mooted as a potential bidder for Woodside and speculation about a deal with Woodside heightened after the Canadian Government rejected BHP's $38.4 billion takeover bid for Potash Corp.

BHP has focused on Woodside a number of times, but considers the company is overvalued.

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Related Coverage

* Kloppers on lookout for BHP Adelaide Now, 6 hours ago
* No takeovers on the horizon: Kloppers The Australian, 12 hours ago
* BHP could play predator, says Deutsche The Australian, 3 days ago
* BHP scores $10.5b jackpot Courier Mail, 4 days ago
* Cashed-up BHP to grow and buy back Adelaide Now, 4 days ago

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Industry sources have suggested a bid would require up to $45 billion. But should some of Woodside's projects stall, the share price could come under pressure, making the company attractive.

Yesterday, Mr Kloppers told the ABC's Inside Business program that BHP had confronted regulatory constraints on non-organic growth of its iron ore business.

"But in many of the other products, potash, copper, and oil and gas, there are no such constraints," he said.

"Obviously, the oil and gas market is a very large one where there may be opportunities."

Pressed whether merger and acquisition were off the agenda after a string of failed deals, Mr Kloppers replied that they were not.

"In six months' time, or a year's time, something else may come up, the situation may change," he said.

On minerals, he said BHP was in a prime position to cash in on continuing high prices for iron ore and other commodities.

He said the commodities story would be one where supply lagged demand because global competitors slashed spending on new production during the financial crisis.