BHP Inks $2B Infrastructure Partnership Deal With BlackRock's GIP

Core Insights - BHP Group Limited has entered into a binding agreement with Global Infrastructure Partners for its stake in the Western Australia Iron Ore inland power network, which will enhance funding and maintain operational control over the infrastructure [1][2] Group 1: Deal Details - BHP holds an 85% interest in WAIO, which includes four main joint ventures in the Pilbara region, and the partnership will create a trust entity where BHP retains a 51% stake and GIP acquires 49% for a funding of $2 billion [2] - BHP will continue to operate WAIO and its inland power infrastructure, paying a tariff for 25 years based on its share [3] - The deal is expected to close by the end of fiscal 2026, pending necessary approvals [3] Group 2: Financial Implications - The net proceeds from the deal will be incorporated into BHP's capital allocation framework, reflecting a disciplined approach to capital management and supporting balance sheet flexibility [4] Group 3: Stock Performance - BHP shares have increased by 13.8% over the past year, while the industry has seen a growth of 22.7% [5]