BHP will be spending about $200 million to buy the social media platform Snap in a $500 million deal that will help it grow its businesses and create new jobs in India.
Snap, which is owned by Alibaba Group, is already in a battle with Uber and has seen growth and revenue shrink in the past year.
In a conference call with analysts, BHP Chief Executive Dan McLaughlin said that while the company’s current growth will be cut by half by 2019, it is confident that Snap’s growth is sustainable.
“We’re confident that we will be able to create jobs and generate revenues,” McLaughlin told analysts.
The company plans to invest in infrastructure in India, a key growth market for BHP.
The acquisition, which could be completed in 2018, comes after BHP had spent about $4 billion on acquisitions since the end of 2016.
In addition to Snap, BHPs other acquisitions include LinkedIn, Amazon Web Services, and Google.
BHP has been looking to focus on India since it acquired its largest competitor, Cargill, in 2009.
BHP has about 70% of India’s market share in the manufacturing, mining, and logistics segment.
While BHP’s investments in India have been slow, it has been increasing its investments in other businesses in the country, including technology and media companies.
Bhuvneshwar Prakash, BHBs Chief Financial Officer, said Snap’s market cap is at $100 billion and it will be an “important part” of the company in the long run.
“Snap will continue to serve our customers and enable our growth, and it is an important part of our growth strategy in India,” Prakashi told analysts during the call.
In India, Bhp has invested $500m in Snap in the last five years.