Billiton in £7.5bn Petrohawk swoop

Mining giant BHP Billiton has agreed to acquire shale gas producer Petrohawk in a deal valuing the US company at around $12.1 billion (£7.5bn).

The agreed all-cash deal is pitched at a rich 65 per cent premium to Petrohawk's last-traded share price and follows BHP's $4.75bn purchase of Chesapeake Energy's interest in an Arkansas shale gas field in February.

BHP and others are targeting shale gas as it emerges as a major source of cleaner-burning fuel in a world increasingly looking for alternatives to coal-fired energy.