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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
All material subject to strictly enforced copyright laws. ©
Euromoney Institutional Investor PLC.
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