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OZ Minerals has agreed to BHP’s increased takeover offer of $9.6 billion, ending several months of speculation over the deal.

OZ Minerals has agreed to BHP’s increased takeover offer of $9.6 billion, ending several months of speculation over the deal.

The mining giant won over the OZ Minerals board with an offer of $28.25 per share, up from its initial takeover bid of $25 per share ($8.4 billion) in August, which the OZ board swiftly rejected.

News of the successful bid comes after it was reported the two companies had renewed their talks this week, following months of suggestions they would not be returning to the negotiating table.

The acquisition gives BHP access to OZ Minerals’ significant portfolio of future-facing minerals – namely copper and nickel – that are vital to the world’s push for clean energy.

The $28.25-per-share offer represents a 49 per cent premium on OZ Minerals’ stock price prior to BHP’s initial bid in August. The OZ board has indicated it will recommend shareholders approve the offer.

After rejecting BHP’s first offer because he believed it failed to properly value the company’s resources, OZ Minerals chief executive officer Andrew Cole said the new offer better recognises its considerable attributes.

“BHP’s revised proposal is a clear reflection of OZ Minerals’ unique set of highly strategic, quality assets in quality jurisdictions and an enviable multi-generational growth pipeline of copper and nickel assets in strong demand due to global electrification,” Cole said.

BHP said the $9.6 billion, $28.25-per-share offer was its “best and final price”.

“(The offer) represents a highly compelling offer for OZ shareholders, providing certainty at a time of macroeconomic uncertainty and market volatility, and risks for the industry,” BHP chief executive Mike Henry said.

“The combination of BHP and Oz Minerals’ assets, skills and technical expertise provides a unique opportunity not available under separate ownership.”

The increased offer – which fell short of the $30-per-share bid many had suggested would be needed to land OZ – goes a long way in confirming BHP’s desire to increase its portfolio of future-facing raw materials. Copper, in particular, will play a major role in the world’s decarbonisation efforts and the commodity is expected to increase in value accordingly.