SYDNEY— BHP Group Ltd. , the world’s largest mining company, bet on a lower-carbon world by agreeing to sell its oil-and-gas unit and separately approving a $5.7 billion project to mine potash in Canada.
BHP’s all-stock deal to sell its oil-and-gas business to Australia’s Woodside Petroleum Ltd. , which will lead to its shareholders owning about 48% of the expanded company, was accompanied by a decision to end the dual listing of its shares in London. Some BHP investors previously lobbied for both of those changes, but they had been rebuffed until now.
Still, BHP’s decision is a blow to the London Stock Exchange , which has prided itself as the go-to place for mining companies to raise capital, attracting metal producers from Chile, Mexico and Russia in recent years. The company’s primary listing will now be in Sydney.
BHP signaled a potential strategic shift on Monday when it said a review of its petroleum division was under way. It said talks to combine it with Woodside were being considered, among other options. Analysts valued the unit at $15 billion, just smaller than Woodside’s $15.5 billion market value at the time the discussions were made public.
Resource companies are fighting to change investor perceptions that mining is problematic, including the role that their commodities play in producing emissions that contribute to global warming. Many are accelerating investments in mined commodities, such as copper and nickel, which are used in products like batteries that are critical to a transition away from fossil fuels.
