HOLD INTERNATIONAL, SELL SA
BHP Billiton* announced the f inal withdrawal from South Africa, saying that it would demerge select assets. The net results would be a local BHP Billiton and an international BHP Billiton, with the latter having as its only South African asset coal along with iron ore, copper and petroleum from other geographies. As a share- holder the question is what will I do with my SA Billiton shares? In truth, I would likely sell them, for exactly the same reasons that Billiton is demerging in SA. Not only because this is a very tough country to mine in but also because of the main reasons why own Billiton in the f irst place. My logic has been that essentially I employ a smart board of people to manage my commodity exposure and I do that via holding Billiton. If they see fit to focus on four core commodities (with potash as a potential fifth commodity), then I will continue to put my faith in them and follow them.
*The writer owns shares in BHP Billiton.