Copying and distributing are prohibited without permission of the publisher
HOTTER ON METALS: BHP Billiton and its aluminium NewCo
August 21, 2014 - 18:20 GMT
Rio Tinto Alcan
If you’re interested in getting equity exposure to aluminium, there’s a new opportunity to do so
Aluminium featured most recently in BHP Billiton's plans for
a demerger, with the commodity making up a central component of
the five divisions the NewCo will comprise. Unfortunately for
aluminium, its place in the soon-to-be-formed company is being
viewed by many market participants as a little compensation for
the metal, given it missed out on being one of the core pillars
BHP Billiton is keeping safely away in the original mining
firm. Viewing the demerger as a division of assets between a
good and a bad company may not be exactly what BHP Billiton had
expected nor intended, and nor may it be entirely fair to the
aluminium division or other commodity assets - coal, manganese,
nickel and silver - included in the new grouping. The data says
a lot, however. The assets BHP Billiton is retaining in the
core group accounted for 96% of its underlying earnings in
All material subject to strictly enforced copyright laws. ©
Euromoney Institutional Investor PLC.
Please log in using your online subscriber details.
Your username will be your registered email address with Metal Bulletin.
If you aren't a subscriber yet, feel free to take a seven day free trial, or subscribe using the instructions below.
A standard subscription include one year's worth of news and prices. You can also upgrade to the full archive and benefit from more than 15 years of intelligence. Start your subscription today.
Taking a free trial will give you open access to Metal Bulletin online news, prices, archived content and email alert service for the next seven days. Start your free trial today.