The $15 billion demerger of BHP has brought about a number of nicknames for the second company to be created under the proposed deal.
These include CrapCo and DudCo — something of an echo of the practice in many companies of labelling new ventures with neutral names such as NewCo before deciding on a permanent name. The perjorative names were a play on the fact that the operations of the new company will be some of the smaller, non-core assets currently held by the world’s biggest mining company.
BHP put the speculation to an end today, announcing the new company will be called “South32” – a reference to the latitude where its major operations South Africa and Australia are located.
Following the demerger, BHP will focus on iron ore, copper, petroleum, coal (mainly metallurgical coal in Queensland and thermal coal in New South Wales) and potash.
The smaller new company, headquartered in Perth, would hold the aluminium and manganese businesses, nickel in Cerro Matoso, energy coal in South Africa, metallurgical coal in Illawarra and silver-lead-zinc mines in Cannington.
Shareholders are expected to vote on the demerger in May.
BHP shares closed 1 % down today at $30.10.