On July 15, Australian miner BHP Billiton and US-based shale gas company Petrohawk Energy Corporation (Petrohawk) announced that they have entered into a definitive agreement for BHP Billiton to acquire Petrohawk for US$38.75 per share by means of an all-cash tender offer for all of the issued and outstanding shares of Petrohawk. Petrohawk shares represent a total equity value of approximately US$12.1 billion and a total enterprise value of approximately US$15.1 billion.
The acquisition will provide BHP Billiton with greater exposure to the world's largest energy market and it will also broaden the company's geographic and customer spread.
The tender offer is expected to commence by July 25, 2011. The acquisition is subject to the terms and conditions set forth in the merger agreement. The transaction is to be financed from existing cash resources and a new credit facility and is not subject to any financing contingency. The transaction is expected to close in the third quarter of 2011.