Global resources giant BHP Billiton on Tuesday announced a $7.3-billion cash offer for WMC Resources.

BHP Billiton detailed in its statement that it is offering WMC shareholders A$7.85 per share.

Last year, mining group Xstrata launched a cash bid of A$7.00 per share for WMC Resources.

The board of WMC Resources has unanimously recommended to their shareholders to accept the BHP Billiton bid, unless a superior offer is put on the table.

BHP Billiton CEO Chip Goodyear said: "The acquisition of WMC Resources is a further step in BHP Billiton’s strategy of developing, operating and maximising the performance of large scale, long-life, low-cost assets.”

Goodyear noted further that the acquisition would provide long-term options in dealing with the “demand growth in China and other high-growth economies”.

BHP Billiton shares fell 1.82 percent to 82 rand on the JSE and 1.27 percent to 740 pence in London.

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