After 87 years in steel making, BHP Billiton, Australia’s largest industrial company, is leaving the industry to concentrate on mining, energy and minerals processing. The Federal Court of Australia has approved the spin-off of the company’s steel division, which provides about 4 percent of BHP’s profits. It is scheduled to be listed as a separate entity, BHP Steel, starting 15 July, and will be permitted to use that name for two years.
BHP will not retain a stake in the new company, which will have assets of about ASD 4.7 billion and annual sales near ASD 5 billion, BHP said. The steel company is expected to have a market capitalisation of about ASD 2.5 billion and will be the largest steel maker in Australasia, supplying about 80% of all flat steel products sold in Australia and New Zealand.
