Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Merger or Acquisition (August 2010)
16 slides from Bhp's merger presentation, Aug 18, 2010
Slide 1: All cash offer for PotashCorp
All cash offer for PotashCorp For personal use only A compelling offer for a Tier 1 business Investor presentation 18 August 2010
Slide 2: Important information
Important information For personal use only The offer to purchase all of the issued and outstanding common shares of Potash Corporation of Saskatchewan Inc. ("PotashCorp") (the “Offer”) will be made by BHP Billiton Development 2 (Canada) Limited (the “Offeror”), an indirect wholly-owned subsidiary o
Slide 3: Agenda
Agenda For personal use only I. A compelling offer to PotashCorp shareholders II. A Tier 1 business III. Details of the Offer IV. Summary A compelling offer for a Tier 1 business Slide 3
Slide 4: All cash offer for PotashCorp
All cash offer for PotashCorp For personal use only All cash offer of US$130 per share for PotashCorp Attractive premium, immediate liquidity and certainty of value regarding the Compelling offer to company’s growth potential PotashCorp Fully financed with committed credit facilities sharehold
Slide 5: An attractive premium to PotashCorp shareholders
An attractive premium to PotashCorp For personal use only shareholders Attractive premium(a) All cash offer of US$130 per share implying (US$) equity value of approx. US$40 billion 150 US$130/share 20% Provides value certainty and immediate 100 32% 33% liquidity for PotashCorp shareholders 50
Slide 6: Long-term commitment and net benefit to Canada
Long-term commitment and net benefit to Canada For personal use only Commitment to maintain current levels of Canadian operational employment for Employment Security foreseeable future Opportunities for PotashCorp employees within larger Group Governance and Intend to locate key management fun
Slide 7: Agenda
Agenda For personal use only I. A compelling offer to PotashCorp shareholders II. A Tier 1 business III. Details of the Offer IV. Summary A compelling offer for a Tier 1 business Slide 7
Slide 8: Potash mining is attractive for BHP Billiton
Potash mining is attractive for BHP Billiton For personal use only Attractive industry fundamentals Arable land per capita vs. population (World population, bn) (Arable land, ha/person(a)) – Increasing demand for food 10 0.5 – Decreasing arable land per capita 8 0.4 6 0.3 – Shift to higher protein
Slide 9: Overview of PotashCorp
Overview of PotashCorp For personal use only Established by the Province of Saskatchewan in 1975 Operations and business interests in seven countries with main operations in North America Saskatchewan Approximately 5,000 employees The world’s largest fertilizer company by capacity New Brunsw
Slide 10: PotashCorp has a Tier 1 asset portfolio
PotashCorp has a Tier 1 asset portfolio For personal use only High quality mining portfolio World’s largest potash company (2009 capacity, mmt) – Large, long-life 12 – Well positioned on the cost curve 9 6 – Expandable 3 – Export-oriented 0 Silvinit ICL Intrepid PotashCorp Potash Belaruskali Uralk
Slide 11: Further diversifies the BHP Billiton portfolio
Further diversifies the BHP Billiton portfolio For personal use only Combined Combined operations operations Attractive new commodity New set of customers in North and South America More significant operating position in Canada, an attractive investment destination BHP Billiton PotashCorp Alum
Slide 12: Agenda
Agenda For personal use only I. A compelling offer to PotashCorp shareholders II. A Tier 1 business III. Details of the Offer IV. Summary A compelling offer for a Tier 1 business Slide 12
Slide 13: Details of the offer
Details of the offer US$130 per share in cash For personal use only Offer Implied equity value and enterprise value of approx. US$40 billion and approx. US$43 billion, respectively(a) 20% premium to 11 August, immediately before the approach to PotashCorp Premium 32% premium to the 30-tradin
Slide 14: Agenda
Agenda For personal use only I. A compelling offer to PotashCorp shareholders II. A Tier 1 business III. Details of the Offer IV. Summary A compelling offer for a Tier 1 business Slide 14
Slide 15: A compelling offer for a Tier 1 business
A compelling offer for a Tier 1 business For personal use only All cash offer at an attractive premium to PotashCorp shareholders Potash is an attractive commodity for BHP Billiton PotashCorp has a Tier 1 asset portfolio that fits naturally with BHP Billiton’s global capability and experience
Slide 16: For personal use only
édl bhpbilliton resourcing the future