BHP Billiton has received approval from the US competition regulator for its $US15.1 billion ($A14 billion) takeover of shale gas company Petrohawk Energy.
The approval came as the world’s biggest miner formally launched the bid with the US Securities and Exchange Commission on Monday.
The regulator, the US Federal Trade Commission, had granted early approval for the $US38.75 per Petrohawk share offer, a 49.5 per cent premium.
The friendly takeover would be BHP’s second major deal in America’s booming shale gas sector in the last six months, as technology makes it easier to produce gas from a non-conventional and previously difficult source of fuel. The advances have made it economically viable, and it produces substantially less carbon emissions than oil.
The global miner in February made a $US4.75 billion purchase of Chesapeake Energy Corp’s interest in the Fayetteville shale field in Arkansas. Analysts from investment bank UBS say shale is projected to comprise 50 per cent of US gas supply by 2030.
AAP
