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A bucket wheel reclaimer is moved into position at BHP Billiton’s iron ore loading facility in Port Hedland, about 1,600 kilometres north of Perth, Australia.
A bucket wheel reclaimer is moved into position at BHP Billiton’s iron ore loading facility in Port Hedland, about 1,600 kilometres north of Perth, Australia.
(TIM WIMBORNE/REUTERS)

BHP tests whether repackaging can create value

Why bother making the Big Australian smaller? BHP Billiton shares rose on news the world’s biggest miner is closer to demerging some unwanted assets. Yet it is hard to see this move transforming either business. This will test whether companies can create sustainable shareholder value merely by putting assets into different packages for different investors.