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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CREDIT UPDATE
BHP Group and Lundin Mining have formed a joint venture to acquire 100% of Filo for approximately C$4.1 billion, giving them access to the Filo del Sol mine in Chile and the Josemaria project in Argentina. The total cash payment for the acquisition is expected to be around $2.1 billion for BHP, and the joint venture aims to develop an emerging copper district with significant potential in the Vicuna copper belt.
- The acquisition aligns with BHP's strategy to increase its exposure to copper, a metal vital for the energy transition, potentially enhancing long-term revenue growth.
- The acquisition price of approximately C$33 per Filo share representing a 12.2% premium over Filo's last closing price, reflecting a strategic investment at a higher cost.
- BHP equity dropped as much as 1.80% this morning before finding support and now trades 1.25% for the session. Bonds look unaffected by the announcement, yields on the BHP 33s have been tracking lower since reaching their peak in April and now trade at 5.01% although slightly underperforming the RIO 33s.
BHP USD Bond Curve - BBG
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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