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BHP Group Unification

BHP Group has a corporate structure, listed in the UK and Australia. They are moving these separate structures into one entity.

This will trigger a tax event for those already invested in BHP. The transaction will happen next week where your holdings will be “sold”, you will not receive any money but your current shares will be reinvested into the new structure, SARS will charge you CGT for the sale of these share at that time. This also means that should you keep and let it run through the process without selling in advance your base cost will have increased when you sell in the future.

They are also merging their Petroleum business with Woodside. BHP and Woodside have signed share sale agreement that will see Woodside acquire BHP’s petroleum portfolio in exchange for new Woodside shares. We as JSE traders will not receive the share portion but a cash portion. This will be happening next year.

The business is still a good investment in my opinion, it mines Iron Ore, Nickel, Copper etc, these minerals are used in the Renewable Energy Sector.

Unfortunately, there will be a tax implication with this unification.

Investors | BHP

Happy Investing!

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