December has been a good month so far for the BHP Group Ltd (ASX: BHP) share price. It has gained 4.95% since the end of November.
The iron ore giant’s stock has likely been driven by news of its unification plan, the planned sale of its petroleum assets, and an ongoing takeover battle.
Having ended November at $39.27, the BHP share price is now $41.32.
For context, the S&P/ASX 200 Index (ASX: XJO) has gained 2.26% this month.
Let’s take a closer look at what the company’s been up to lately.
What’s driven the BHP share price in December?
The first news to move the BHP share price this month was of the company’s intent to unify its corporate structure.
After the market closed on 2 December, BHP announced that it’s proceeding with its plan to converge with its London-listed, BHP Group Plc. Its share price gained 1.3% the following day.
After the unification – which requires shareholder approval – BHP will be primarily listed on the ASX.
The company released a prospectus for its proposed unification the following week.
That’s not the only exciting happening to have driven the BHP share price lately.
The long-awaited sale of the company’s petroleum assets to Woodside Petroleum Limited (ASX: WPL) was given the green light by Australia’s competition watchdog this month.
However, December has also seen BHP release seemingly unfortunate, non-price sensitive news.
The company’s ongoing acquisition offer for Canadian nickel miner, Noront Resources was recently outbid by Wyloo Metals.
Previously, BHP put in an offer to acquire the company, bidding 81 cents (C$0.75) per Noront share.
However, Wyloo Metals – owned by the private investment vehicle of Andrew Forrest, who is also chair of Fortescue Metals Group Limited (ASX: FMG) – put forward a bid of $1.19 (C$1.10) per share.
BHP vowed not to match Wyloo Metals’ bid on 22 December.
Finally, the price of iron ore has likely helped boost the BHP share price this month.
According to data from CNBC, the commodity’s price has increased 18% since the end of November.
A dry metric tonne of the metal is currently trading for US$112.99.
The post Why is the BHP (ASX:BHP) share price having such a good run in December? appeared first on The Motley Fool Australia.
Should you invest $1,000 in BHP Group right now?
Before you consider BHP Group, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BHP Group wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
More reading
- These are the 10 most shorted ASX shares
- Could 2022 be a good year for the BHP (ASX:BHP) share price?
- Got money to invest for income? Here are 2 ASX dividend shares that could be buys
- 5 things to watch on the ASX 200 on Thursday
- Top brokers name 3 ASX shares to buy today
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3qwROtl
Leave a Reply