If you've been reading the Wall Street Journal daily, as I have for these past few months, you have heard of a company called BHP Billington. The Melbourne, Australia based mining and oil and gas company has been in the market to acquire other Natural Resource firms. Most notably among them is Potash Corp., a Saskatchewan based company that is the worlds largest producer of Fertilizer material Potash. The long saga of BHP attempting to buy the company for months led to higher stock prices for both firms up until the Canadian government itself did not allow the transaction to occur. Since then stock prices have fallen significantly.
Marius Kloppers, BHP's CEO, has been looking to acquire companies to use its cash deposits and expand its businesses internationally.
Now possible targets include Woodside Petroleum and Anadarko Petroleum Corporation, we'll see how this one works out for the CEO Marius Kloppers and BHP.
The costs and time spent on attempting transactions with no result could lead to the downfall of the CEO, Mergers and Acquisitions are becoming ever more present in the marketplace. (the BHP bid was ~$39Billion) Look out for some major management changes in many firms in the future.
Update on this, so far BHP Billington has not acquired either of the targets; but I will post Part 2 of the M&A and its effects on Management soon.
ReplyDeleteHey Greg, it is nice to see you getting out of your way to inform me about BHP ;). It is funny how after all this time a deal never went through between BHP and Potash. Anadarko Pertroleum is a target? It looks like the management within BHP is not really sure what it needs. A natural fertilizer company to an oil & gas, exploration and production company are very different. Like you said "Look out for some major management changes..."
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