Athos, here is my board brush thinking behind the merger:As BHP...

Athos, here is my board brush thinking behind the merger:

• As BHP shareholders, we have a financial interest in a range of assets including oil and gas assets
• As BHP shareholders, we have elected a Board of Directors to look after our best interests.
• The BHP Board has determined that it is our best interest to divest the oil and gas assets (to be seen to be a "greener" company in my view)
• The Board has further determined that it is our best interest for them to merge BHP's oil and gas assets with Woodside's, oil and gas assets
• After the merger, BHP will have a smaller interest in a larger oil and gas asset base (combined assets of BHP and Woodside).
• If the BHP and Woodside Boards have done their jobs properly, the transaction will be equitable for both sets of shareholders so BHP shareholders will be no better or worse off in regards to the oil and gas assets that they own.
• However, from an operational point of view, we should be better off if the predicted synergy savings are realised.
• In addition to not being any worse off from an asset ownership point of view, and hopefully better off from an operational point of view, we also get some franking credits which may or may not be of benefit to us depending on our marginal tax rate
• Further, as BHP shareholders, the oil and gas assets have now been separated from BHP's other assets so if we do not want to hold oil and gas assets because we think they are destroying the planet, we can sell our Woodside shares and rest comfortably that we are doing our bit to save the world
• You have stated that you also own Woodside shares so it is even simpler for you.
• You own exactly the same portion of exactly the same oil and gas assets that you did before except that they are now housed entirely within Woodside rather than being split across BHP and Woodside
• You still get the operational benefits (hopefully) and potential franking credit benefit so there is little downside for you (depending on the relative holdings in each company)

Hope that helps rather than further confuses!