BHP in talks with Wyloo over Noront takeover

BHP Group said it was in talks Australia’s Wyloo Metals on the takeover of Noront Resources as both firms vie to take over the Canadian nickel producer.

The world’s biggest miner last month lifted its all-cash offer for Noront to CAN$0.75 per share, overtaking Wyloo's CAN$0.70.

"BHP and Wyloo Metals have engaged in initial conversations and are considering a mutually beneficial arrangement regarding the acquisition of Noront by BHP," BHP said in a statement. Wyloo is owned by Australian billionaire Andrew Forrest.

Noront’s main asset is the Eagle's Nest high-grade nickel deposit in Canada's so-called ‘Ring of Fire’, a key component for electric vehicle battery makers, as well as copper and palladium.

BHP has also extended the tender expiry for its takeover to November 16.

Wyloo confirmed that it had entered the discussions and said it was “considering the potential of a mutually beneficial arrangement with BHP insofar as this arrangement can deliver greater deal certainty to Noront shareholders”.