BHP (BHP) Acquires Chesapeake Energy's (CHK) Shale Gas Interests for $4.75 Billion

Global mining giant BHP Billiton (NYSE:BHP) has agreed to buy shale gas interests from Chesapeake Energy Corp (NYSE:CHK) for $4.75 billion in its first move into shale gas as it looks to beef up its oil and gas business.

In BHP's first big acquisition since a string of failed deals, the global miner said it was buying Chesapeake's holdings in Arkansas' Fayetteville shale natural gas field.

"BHP have had four multi-billion deals which have tipped over so the market should be pleased that this is one that is going to go through and it is a change of direction in terms of looking at their petroleum division," said Ric Ronge, portfolio manager at Pengana Capital.

BHP shares jumped more than 3 percent in early Sydney trade on news of the deal, which the company will fund from its substantial cash reserves.

BHP's acquisitions strategy has shifted focus to its petroleum division after regulatory and political obstacles dashed its $39 billion takeover bid for fertilizer maker Potash Corp and an iron ore joint venture with Rio Tinto .




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