BHP rejects climate action motivation as it abandons oil & gas in $41 billion mega merger with Woodside

Global resources giant BHP will abandon its oil and gas businesses in what's being interpreted as a huge strategic move away from fossil fuels. 

BHP plans to hive off the assets if shareholders and regulators approve a merger with Woodside Petroleum to create a combined market value of $41 billion.

BHP chief executive Mike Henry says the deal is not entirely motivated by dire warnings about the climate but he concedes increasingly more investors want the option to moving away from fossil fuels.

"We don't believe divestments should be counted towards a company's reduction in emissions .. so this is no grand statement about oil and gas," Mr Henry told me on a media teleconference after the deal was announced.

Here's my report from this morning's edition of "AM".

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