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BHP ends talks for Wyloo support of Noront (NOT) takeover

By Debabrata Das

04:18, 13 December 2021

BHP’s nickel mine in Western Australia
BHP’s nickel mine in Western Australia – Photo: BHP

Anglo-Australian miner BHP has ended discussions with Australia’s Wyloo Metals for potential support of its subsidiary BHP Lonsdale’s CAD0.75 per stock offer for Canadian miner Noront Resources.

Despite the breakdown in talks, BHP will go ahead with its tender offer and both BHP Lonsdale and Noront have urged stockholders to tender their stocks to BHP Lonsdale’s offer.

“The offer [BHP Lonsdale’s offer] is the only offer available to Noront shareholders and it continues to have the support and recommendation of the Board of Directors of Noront,” BHP said in a statement on Sunday.

Wyloo raises its offer

Wyloo Metals is a 37.2% shareholder of Noront. However, BHP has made it clear in the past that it does not need the Australian miner’s support for its takeover offer.

BHP said in a statement in October that at least 50% of Noront shares not owned by BHP must be tendered for stockholders to receive the CAD0.75 all-cash offer for their stocks. Wyloo owned 24.4% of Noront at the time.

However, Wyloo also stepped up its pursuit of Noront after talks for supporting BHP’s offer ended.


0.61 Price
+1.320% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

Oil - Crude

76.87 Price
+2.340% 1D Chg, %
Long position overnight fee -0.0211%
Short position overnight fee -0.0008%
Overnight fee time 22:00 (UTC)
Spread 0.030


37,626.45 Price
+1.510% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00


15,967.90 Price
+0.120% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8

Will not support competing offers

On Monday, Wyloo said in a statement that it has raised its offer for acquiring Noront to CAD1.10 per stock, 47% higher than BHP’s offer.

Wyloo said that its offer allows Noront’s stockholders to either accept the cash consideration or continue to be Noront’s stockholders. It added that it does not intend to support any alternate offers for Noront.

“Without the support of Wyloo Metal’s 37.2% direct interest in Noront, a competing plan of arrangement cannot be successful, and a competing takeover bid will be unlikely to meet any minimum tender condition,” the statement from Wyloo added.

BHP stock price up

On Monday mid-morning trading in Australia, BHP’s stocks were trading 2.85% higher at AUD41.10.

Read more: Australia’s BHP sweetens bid for Canada’s Noront Resources

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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