Why is the BHP (ASX:BHP) share price having such a good run in December?

Here's what the ASX 200 resources giant has been up to lately.

| More on:
A mining worker wearing a hard hat, orange high vis vest and blue long-sleeved shirt raises his fists in celebration with an excited expression on his face

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

December has been a good month so far for the BHP Group Ltd (ASX: BHP) share price. It has gained 4.95% since the end of November.

The iron ore giant's stock has likely been driven by news of its unification plan, the planned sale of its petroleum assets, and an ongoing takeover battle.

Having ended November at $39.27, the BHP share price is now $41.32.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 2.26% this month.

Let's take a closer look at what the company's been up to lately.

What's driven the BHP share price in December?

The first news to move the BHP share price this month was of the company's intent to unify its corporate structure.

After the market closed on 2 December, BHP announced that it's proceeding with its plan to converge with its London-listed, BHP Group Plc. Its share price gained 1.3% the following day.

After the unification – which requires shareholder approval – BHP will be primarily listed on the ASX.

The company released a prospectus for its proposed unification the following week.

That's not the only exciting happening to have driven the BHP share price lately.

The long-awaited sale of the company's petroleum assets to Woodside Petroleum Limited (ASX: WPL) was given the green light by Australia's competition watchdog this month.

However, December has also seen BHP release seemingly unfortunate, non-price sensitive news.

The company's ongoing acquisition offer for Canadian nickel miner, Noront Resources was recently outbid by Wyloo Metals.

Previously, BHP put in an offer to acquire the company, bidding 81 cents (C$0.75) per Noront share.

However, Wyloo Metals – owned by the private investment vehicle of Andrew Forrest, who is also chair of Fortescue Metals Group Limited (ASX: FMG) – put forward a bid of $1.19 (C$1.10) per share.

BHP vowed not to match Wyloo Metals' bid on 22 December.

Finally, the price of iron ore has likely helped boost the BHP share price this month.

According to data from CNBC, the commodity's price has increased 18% since the end of November.

A dry metric tonne of the metal is currently trading for US$112.99.

Should you invest $1,000 in Bhp Group right now?

Before you buy Bhp Group shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Bhp Group wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Miner looking at a tablet.
Resources Shares

Mineral Resources share price slides despite significant reserves growth

An 89% resources upgrade hasn’t boosted Mineral Resources shares today.

Read more »

Copal miner standing in front of coal.
Resources Shares

How much upside does Macquarie tip for New Hope shares?

A softer-than-expected quarter has impacted the broker's view.

Read more »

2 people at mining site, bhp share price, mining shares
Resources Shares

Rio Tinto share price pushes higher on $1.4 billion lithium agreement

Rio Tinto shares are gaining major lithium exposure.

Read more »

Miner looking at a tablet.
Resources Shares

Up 73% since April, why Mineral Resources shares could keep charging higher

A leading expert says that Mineral Resources shares remain ‘heavily undervalued’. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Resources Shares

Guess which ASX 200 mining stock is sinking 7% following its quarterly update

Let's see how this miner performed during the third quarter.

Read more »

Miner looking at a tablet.
Resources Shares

What's the latest broker ratings on BHP shares?

There's an air of caution floating about BHP shares even with bullish ratings.

Read more »

A young African mine worker is standing with a smile in front of a large haul dump truck wearing his personal protective wear.
Resources Shares

BHP shares last traded at $50 in 2023. When will they get back there?

Let’s dig into the potential for BHP shares to rise.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 21% on 'exceptional' results

Investors are sending the ASX All Ords stock flying higher on Wednesday. But why?

Read more »