BHP Billliton to acquire Petrohawk for $ 12.1 billion

Anglo-Australian mining and oil company BHP Billiton has agreed to takeover US Petrohawk for $38.75 a share. Petrohawk shares last closed at $23.49, but BHP CEO, Marius Kloppers, defended the premium saying that “Our offer and the associated substantial premium represent a unique opportunity for Petrohawk shareholders and recognise the growth opportunities embedded in its portfolio immediately”.

Also, BHP Billiton Petroleum Chief Executive, J. Michael Yeager, said that the Petrohawk deal “provides the potential to more than double our existing resource base.”

BHP plans to finance the transaction with existing cash resources and new credit facility and is not subject to any financing contingency. The deal is expected to close in the third quarter of 2011.