|woodside petroleum merger||0.05||1||9582||68|
MELBOURNE (Reuters) -Shares in BHP Group and Woodside Petroleum fell on Wednesday as investors on both sides raised questions about the value of the Perth-based oil and gas group's proposed $29 billion merger with BHP's petroleum arm.Why is the Woodside share price falling?
Investors said the fall in Woodside shares was also partly due to worries about an overhang of stock as BHP investors who want to get out of fossil fuels would look to dump the shares. The stock was down 1.2% in afternoon trade, underperforming a 1% rise in local rivals Santos STO.AX and Oil Search OSH.AX.Who will own Woodside now?
It is expected that the expanded Woodside will be owned 52 per cent by existing Woodside shareholders and 48 per cent by BHP shareholders.Will Woodside be the worst performing energy company post-covid?
"Woodside is one of the worst-performing companies within the energy sector globally post-COVID; the company doesn't yet have a strong mandate to enter a deal of such questionable value and this could further drag on Woodside's shares," said Jamie Hannah, deputy head of investments at Van Eck Australia, a shareholder in both companies.