Aussie oil and gas giant Santos receives almost $30b takeover bid from consortium led by Abu Dhabi National Oil Company
The $25b energy giant Santos told shareholders on Monday the group, which includes global investment firm Carlyle and is known as the XRG Consortium, received a proposal to acquire the Aussie company for US$5.76 (A$8.89) per share.
The bid marks a 28 per cent jump on Santos' Friday closing share price of $6.69 and follows two previous offers at lower prices made in March.
Santos said it has provided the XRG Consortium with access to confidential information on the company to determine an offer.
The consortium said it wants Santos to enter into an exclusivity deed before further discussions and negotiations.
Santos' board has recommended its shareholders vote in favour of the potential takeover.
The deal will need the approval from a litany of bodies including the Australia Securities and Investments Commission, the Foreign Investment Review Board and the National Offshore Petroleum Titles Administrator.
XRG Consortium has promised to keep Santos' headquarters in Adelaide, support Aussie employment and the communities where it operates and bolster gas investment in Australia.
'The XRG-led consortium aims to build on Santos' strong and longstanding legacy as a trusted and reliable energy producer, unlocking additional gas supply for Santos' customers, and strengthening domestic and international energy security,' the consortium said in a statement.
'The proposed transaction is aligned with XRG's strategy and ambition to build a leading integrated global gas and LNG business.'
E&P analyst Adam Martin said he had considered Santos as a target for mergers and acquisitions (M&A) for more than two years now.
'Since that time, there has been numerous media articles about potential M&A and an official approach from Woodside regarding a merger between the two companies,' Mr Martin said.
'With the passage of time, our conviction level on Santos being acquired has been reducing as the business has effectively been open to offers but there has been limited newsflow.
'That said, now does feel like an opportune time to acquire Santos with risks building on energy prices and Santos entering a free cash inflection phase with the completion of several major growth projects.'
ADNOC's investment marks a shift for the UAE company as it embarks on becoming a leader in the gas and LNG sectors.
Santos' share price has jumped 12.7 per cent on Monday since news of the bid came to light.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Perth Now
2 hours ago
- Perth Now
Aussie airline brings back pop-up store
Virgin Australia is bringing back its Velocity Frequent Flyers 1 Point Rewards Store in three Aussie cities. The airline announced it would be bringing back its loyalty reward program after its sellout debut on Chapel St in Melbourne in 2023. Virgin Australia is bringing back its Velocity 1 Point Rewards Store. NewsWire / Luis Enrique Ascui Credit: News Corp Australia For one day only, Velocity members will be able to redeem items such Bose, Dyson and GHD hair products, designer perfumes, Virgin Australia flights and Lounge access for one Velocity Point. It will first hit Sydney's Pitt St on Friday, August 22 between 8am and 9am, with dates and locations for Melbourne and Brisbane still to be announced. From 8am on August 22, members will be able to redeem one reward per member, per location. Upon claiming a reward, one point will be deducted from the Velocity member account in-store. The first pop-up store will be in Sydney, followed by Melbourne and Brisbane at a later date. Supplied Credit: Supplied Members must have the app downloaded and one point in their Velocity account to be eligible. The pop-up shops will feature a mystery prize carousel and claw machines, with Virgin Australia crew on the scene to help. Velocity Frequent Flyer chief executive Nick Rohrlach said it was easier than ever to earn points in every day life. 'Velocity is all about getting our members to rewards faster and the 1 Point Rewards Store puts the spotlight on that. With Velocity, earning Points is easy and fast,' he said 'You don't need to spend big or wait long for your next reward – spending daily on things like your morning coffee, a tank of fuel, weekly grocery shop or mobile phone bill could get you there in no time.'
Sydney Morning Herald
4 hours ago
- Sydney Morning Herald
Australia needs to cough up its ‘regulatory hairballs', declares PC boss
Productivity Commission boss Danielle Wood is calling on all levels of government to launch a war on red tape and bureaucracy, describing an avalanche of laws over recent years as 'regulatory hairballs' that have held back living standards. Before the federal government's three-day economic roundtable, which Treasurer Jim Chalmers says will tackle red tape in areas from housing to mining approvals, Wood will use a speech on Monday to argue that politicians have sought to over-regulate the country at the expense of economic growth and opportunities for all Australians. Wood is one of the key attendees at the roundtable that will include business, community and union leaders who will canvass issues ranging from the shape of the tax system to the rise of AI to the lack of competition across parts of the economy. In an address to the National Press Club, Wood will say that economic growth has fallen down the list of priorities. Governments at all levels have instead focused on other policy goals. This had contributed to 'regulatory creep' where governments feel they have to respond to any issue with new laws or red tape, as voters looked to a 'Canberra fix' that ultimately led to decisions that slowed growth. Loading She will argue all governments should follow the lead of the administration of former American president John F. Kennedy, which put up signs in the US Commerce Department asking: 'What have you done for growth today?' 'Perhaps it's time to distribute that sign to government agencies and ministerial offices all around our country,' she will say. 'Regulatory hairballs have found their way into almost every corner of our economy. Growth has simply fallen down the list of priorities in policymaking.'
The Age
4 hours ago
- The Age
Australia needs to cough up its ‘regulatory hairballs', declares PC boss
Productivity Commission boss Danielle Wood is calling on all levels of government to launch a war on red tape and bureaucracy, describing an avalanche of laws over recent years as 'regulatory hairballs' that have held back living standards. Before the federal government's three-day economic roundtable, which Treasurer Jim Chalmers says will tackle red tape in areas from housing to mining approvals, Wood will use a speech on Monday to argue that politicians have sought to over-regulate the country at the expense of economic growth and opportunities for all Australians. Wood is one of the key attendees at the roundtable that will include business, community and union leaders who will canvass issues ranging from the shape of the tax system to the rise of AI to the lack of competition across parts of the economy. In an address to the National Press Club, Wood will say that economic growth has fallen down the list of priorities. Governments at all levels have instead focused on other policy goals. This had contributed to 'regulatory creep' where governments feel they have to respond to any issue with new laws or red tape, as voters looked to a 'Canberra fix' that ultimately led to decisions that slowed growth. Loading She will argue all governments should follow the lead of the administration of former American president John F. Kennedy, which put up signs in the US Commerce Department asking: 'What have you done for growth today?' 'Perhaps it's time to distribute that sign to government agencies and ministerial offices all around our country,' she will say. 'Regulatory hairballs have found their way into almost every corner of our economy. Growth has simply fallen down the list of priorities in policymaking.'
