Shares in BHP (LON:BLT) have climbed higher in London in today’s session, as the blue-chip miner settled a transfer pricing dispute with Australian regulators over its marketing operations in Singapore. The settlement will see the Anglo-Australian miner pay A$529 million (£300 million).
As of 08:22 GMT, BHP’s share price had added 0.70 percent to 1,618.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.44 percent higher at 7,044.82 points. The group’s shares have added nearly 19 percent to their value over the past year, as compared with about a 4.6-percent dip in the Footsie.
BHP settles dispute
BHP announced in a statement today that it had reached an agreement with the Australian Taxation Office (ATO) to settle the transfer pricing dispute relating to its marketing operations in Singapore. The dispute related to the amount of Australian tax payable as a result of the sale of the FTSE 100 group’s Australian commodities to BHP’s Singapore marketing business.
The Anglo-Australian miner explained that the settlement resolves the dispute for all prior years, namely 2003 to 2018, with no admission of tax avoidance by BHP. As part of the agreement, the FTSE 100 group will pay a total of approximately A$529 million in additional taxes for the income years 2003 to 2018. The company noted that it had already paid A$328 million of that amount.
“It’s good to resolve, no admission of liability but small in the overall scheme for BHP,” said Rohan Walsh, a Melbourne-based investment manager for Karara Capital, as quoted by Reuters.
Analysts on blue-chip miner
Credit Suisse reaffirmed BHP as a ‘neutral’ last week, while earlier this month, Liberum Capital reiterated its ‘sell’ stance on the blue-chip miner. According to MarktBeat, the company currently has a consensus ‘hold’ rating and an average price target of 1,770.94p.