MINING AND PETROLEUM
Change expected from new BHP chairman
BHP’s new chairman is about to shake things up at the world’s largest mining company
Singapore — BHP’s new chairman is about to shake things up at the world’s largest mining company, according to Sanford C Bernstein, which says that Ken MacKenzie will probably undertake a full-scale review of assets and strategy, and may demerge the petroleum business. "Despite management’s reluctance to change at this stage, we believe that BHP is about to experience a radical shift in strategy, driven by the arrival, effective September 1, of the new chairman," said analysts including Paul Gait. MacKenzie used to run a packaging business, and his "detachment from the mining sector makes him, we believe, inevitably far more objective on the best direction BHP should take from now on". BHP has been the target of an activist investor campaign in recent months spearheaded by Elliott Management Corporation, which has rounded on management decisions that the fund claims have destroyed about $40bn in value. MacKenzie’s arrival to replace Jacques Nasser has been welcomed by Elliott, and B...
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