https://au.news.yahoo.com/thewest/
BHP Billiton has shelved the $800 million sale of Nickel West after bids for the struggling unit failed to meet its price expectations.
It remains unclear what the mining giant now plans to do with a business that employs about 1800 people across its mines, concentrators, nickel smelter and refinery.
BHP would not comment yesterday. Chief executive Andrew Mac- kenzie has made clear he does not want to keep the unit, which is part of the proposed NewCo spin-off that will house second-tier assets, including Worsley alumina.
Mr Mackenzie said three months ago that Nickel West was “neither a good fit with BHP Billiton nor with NewCo” and the best outcome was for it to be owned by an operator “much more committed to the nickel business”.
Industry sources said no final bids received over the past fortnight came close to the $500 million to $800 million valuation BHP is said to have initially put on Nickel West.
The failure of suitors to see sufficient value in the business came despite talk that BHP had dramatically revised its price expectations as the sales process dragged on.
Sources suggest BHP would have accepted offers of $300 million if the buyer also agreed to take on Nickel West’s closure and environmental rehabilitation liabilities, estimated to be worth as much as $1 billion.
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