Mining giant BHP (ASX:BHP) has started talks with billionaire Andrew Forest’s Wyloo Metals about the proposed takeover of Canadian nickel miner Noront Resources.
Wyloo Metals owns a 37 per cent per cent stake in Noront. Last month, BHP’s subsidiary BHP Lonsdale Investments raised its offer to acquire all shares in Noront from $0.55 to $0.75 per share, outbidding Wyloo’s $0.70 a share proposal.
To allow more time for discussions to progress, BHP is extending the initial expiry of its offer from 11.59pm on November 9 to 7.00pm on November 16.
“BHP and Wyloo Metals have engaged in initial conversations and are considering a mutually beneficial arrangement regarding the acquisition of Noront by BHP. There is no assurance that any agreement will be reached between BHP and Wyloo Metals,” said BHP.
Shares in BHP (ASX:BHP) are trading 1.1 per cent higher at $35.96.