BHP Billiton appoints new chairman as it fends off activist Elliott

BHP Billiton, the mining giant embroiled in a battle with activist hedge fund Elliott over the direction of the business, on Friday named packaging guru Ken MacKenzie as its new chairman.

The FTSE-100 Anglo-Australian miner said the 53-year-old will succeed Jac Nasser, who is retiring, in September.

Canadian-born MacKenzie, who spent 10 years as chief executive of Amcor, which makes packaging for food producers and industrial and pharmaceutical firms, joined the BHP board last year as a non-executive director.

He said he would “work tirelessly” with the board and management to create long-term value for shareholders.

Senior independent director Shriti Vadera, who led the succession process, said: “Ken brings extensive global executive experience and a strategic approach.

“He has the operational and financial capabilities as well as the rigour necessary to effectively oversee BHP’s capital allocation framework.”

It ends an eight-month search for a successor to Nasser, nicknamed Jac the knife after extensive cost-cutting. Non-executive director Carolyn Hewson and former Westpac chief Gail Kelly had been considered front-runners.

The appointment comes as activist investors, led by Elliott, press for an overhaul of the board and sweeping changes, including an exit from some of BHP’s US oil and shale businesses.

Elliott welcomed the appointment as “a constructive step in bringing much-needed change to the direction of BHP”.

The hedge fund added: “As a large investor in BHP, Elliott encourages Mr MacKenzie to use his leadership skills to address BHP’s poor capital allocation and underperformance.”