BHP to Exit FTSE 100

Proposals, which still need to be approved by investors, will dismay dividend investors used to bumper payouts from this mining giant

James Gard 19 August, 2021 | 11:19AM
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Mining giant BHP (BHP) is proposing to leave the FTSE 100 and move its main listing to Australia as part of plans to simplify the business. The announcement is likely to disappoint investors as BHP is one of the biggest constituents in the index and one its most significant dividend payers. If approved, the move will have wide implications for index investors and income seekers alike.

Currently BHP shares are listed in both Sydney and London as BHP Limited and BHP Plc and are trading at £21.24 and A$44 respectively. Morningstar mining analyst Matthew Hodge says the move to collapse the dual-listed structure would need the support of 75% of both UK and Australian shareholders to go ahead. It’s been on the cards for many years – the plan was last looked at in 2017 – but this time Hodge expects the deal to go through. If so, it would take effect in the first half of 2022. 

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James Gard  is content editor for Morningstar.co.uk

 

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